Small Businesses During COVID-19
The coronavirus pandemic is affecting businesses in a variety of ways. The Coronavirus Aid, Relief, and Economic Security (CARES) Act just passed by Congress is intended to assist small business owners with their needs. With our small business owner tenants in mind, Millan Enterprises, LLC. is here for you with the information you need.
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Capital to cover the cost of retaining employees
The Paycheck Protection Program (PPP) may be the right fit for you, if you are looking to retain employees. This program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. Small businesses and other entities will be able to apply if they were harmed by COVID-19 between February 15, 2020, and June 30, 2020. The program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available for application submission through June 30, 2020.
These are the businesses and entities that are eligible for the PPP Loan:
- Businesses and entities must have been in operation on February 15, 2020.
- Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
- Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
- Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
- Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company.
For more information, please refer to pages 2 through 5 of The Small Business Owner’s Guide to the CARES Act.
Ease your fears about keeping up with payments on your current or potential SBA loan
The Small business Debt Relief Program can provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.
SBA Loans eligible for debt relief under this program do not include:
- 7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are also not eligible.
For more information, please refer to page 6 of The Small Business Owner’s Guide to the CARES Act.
Cash to cover you right now
The Economic Injury Disaster Advance Loan can provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for a SBA Economic Injury Disaster Loan (EIDL). The advance does not need to be repaid under any circumstances.
Eligibility for an EIDL are the following with 500 or fewer employees:
- Sole proprietorships, with or without employees
- Independent contractors
- Cooperatives and employee owned businesses
- Tribal small businesses
Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size
For more information, please refer to pages 7 and 8 of The Small Business Owner’s Guide to the CARES Act.
In-need of a business counselor
If you are in need of a business counselor to help guide you through this uncertain time, you can turn to your local Small Business Development Center (SBDC), Women’s Business Center (WBC), or SCORE mentorship chapter. Counseling is free and training is low-cost with these partners. The additional funds that Congress provided will help keep this possible. Mentorship through SCORE is always free. To find a local resource partner, visit https://www.sba.gov/local-assistance/find/.
For more information, please refer to page 9 of The Small Business Owner’s Guide to the CARES Act.