Woman wearing denim shirt using laptop in the officeOn Friday, the Coronavirus Aid, Relief, and Economic Security Act became law, and that is great news to small business owners struggling with the effects of COVID-19 stay-at-home orders.

Here’s how it might help you or a small business owner you love:

SBA Economic Disaster Loans and Grant

  • Small business owners can apply for an Economic Injury Disaster Loan of up to $2 million with interest rates of 3.75%.
  • And here’s the best part—when you apply for the loan, you can also apply for a grant of $10,000. The SBA website calls this an advance on the loan, but it does not need to be repaid if used for paid leave, payroll, and a wide variety of business expenses.
  • Even if you are denied for the loan, you can still get the $10,000 grant.
  • The first month’s loan payment is deferred for one year.
  • The SBA is promising a simple application which, for loans under $200,000 does not require a personal guarantee.

You can apply directly here: https://www.sba.gov/disaster/apply-for-disaster-loan/index.html

The application that includes the $10,000 grant is not live yet, but the SBA is promising to have it ready in days.

SBA Paycheck Protection Program

  • Small business owners can apply for loans of up to $10 million through their local lenders, and the loans are backed by the SBA.
  • The loans are no fee and do not require a personal guarantee.
  • Interest is capped at 4%.
  • The loan repayment provisions are generous, and payments the business makes for payroll, rent, utilities, and health insurance may be forgiven.
  • Small businesses can apply for both types of loans.

Senator Brian Schatz’s office has a good summary of support available to small business under the CARES Act here: https://www.schatz.senate.gov/coronavirus/small-businesses

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