COVID-19: CARES Act & Small Business Relief Take 2
Where Did It Begin?
The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020. Over $2 trillion was designated to providing fast and direct economic assistance to American workers, families, and businesses impacted by the COVID-19 pandemic. This is the largest economic stimulus package in U.S. history. Assistance to small businesses was funneled through the Paycheck Protection Program (PPP), to help supply resources necessary to maintain payroll, rehire previous employees, and cover overhead. Unfortunately, this assistance was depleted so quickly that many of our clients reported missing out on the first round of funding. They continued to struggle while awaiting proposed additional funding.
Where Is It?
On April 24, 2020, a CARES Act interim funding bill was signed, providing $484 billion to support hospitals, COVID-19 testing, and small businesses. In addition to adding $310 billion to the PPP, $60 billion was designated for the Small Business Administration’s disaster loan and grant programs. As before, this funding source is expected to dry up fast. So, how can our clients act to secure support while it is available?
Where Is It Going?
The SBA will begin accepting PPP loan applications again on April 27, 2020. The SBA is encouraging approved lenders to “process loan applications previously submitted by eligible borrowers and disburse funds expeditiously.” But would-be borrowers are being encouraged to work with an approved lender. So, it is likely best to work with a lender rather than the SBA directly. If you have already applied through a lender and been approved, contact your lender for an update. Finding a lender that is accepting new customers can be difficult. Try searching lender lists (SmartAsset offers one) that specify which lenders are accepting new clients.
We at CommonWealth GrantWorks are here to help you navigate the waters of transitory and fast-moving funding opportunities.
Call us today if we can be of help.