Corona Virus Update: CARES Act Can Help
Following the declaration of a national emergency to combat the Coronavirus (COVID-19) pandemic, the Small Business Administration (SBA) launched the Economic Injury Disaster Loan Assistance (EIDL) program for small business owners in all US states, Washington D.C., and other US territories. EIDL loans are now available. In addition to this loan the SBA is offering an immediate $10,000 advance (the Emergency Economic Injury Grant) within three days of applying for an EIDL. The advance does not need to be repaid if you do not qualify for an EIDL loan.
On March 27th, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a stimulus bill that includes a loan program to keep small businesses afloat during mandated COVID-19-related closures. The CARES Act includes a Paycheck Protection Program (PPP) which authorizes up to $349 billion of federally guaranteed loans to qualifying small businesses. This new loan program is based on the SBA’s existing 7(a) loan program and will make forgivable loans of up to $10 million available to qualifying small businesses.
If you accept the EIDL loan, and you subsequently qualify for the PPP loan, you can re-finance the EIDL loan with the PPP loan.
Loans are limited to one loan per Taxpayer Identification Number.
If you already have a traditional SBA 7(a), 504 or microloan (i.e. a non-disaster SBA loan), under the Small Business Debt Relief Program, the SBA will cover all payments on these SBA loans, including principal, interest, and fees, for six months.
Feel free to call the Dennaoui Law Firm with any questions or contact us via email: [email protected].
Frank Dennaoui, Esq.
No attorney-client relationship is created by you looking at this blog, reading it, or posting on it. The information contained in this blog is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. The opinions expressed in this blog are the opinions of the author only and may not reflect the opinions of the author’s law firm. No representations are made as to the accuracy, completeness, or validity of any information contained in this blog. Confidential or time-sensitive information should not be posted in this blog.
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