By: Donovan W. Mann – [email protected]
Humboldt, IA – The CARES Act will help provide businesses with economic relief during the COVID-19 pandemic.
On Friday, March 27, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. It is designed to provide economic relief to everyone impacted by the COVID-19 pandemic. The Humboldt County Development Association helps break down what the CARES Act means for small businesses.
Three programs were created to assist small businesses. The Payment Protection Program (PPP) Loans would provide cash-flow assistance so that employer can maintain the payroll. If employers maintain their payroll the loan would be forgiven based on eligibility. The PPP Loans are available through June 30, 2020.
The Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster Small Business Association (SBA) Loans. Under it the SBA will cover all loan payments on these SBA loans for six months. This relief will also be available to new borrowers who take out a loan within six months of the CARES Act signing.
Economic Injury Disaster Loans and Emergency Economic Injury Grants provide and emergency advance to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). Advances can be accessed by applying for an EIDL and requesting the advance. The advance does not need to be repaid and may be used for several purposes.
The SBA also will be providing counselling and training to small business owners to help guide them through these rough times. Small business owners are encouraged to contact their local Small Business Development Centers for advice.
More information on financial resource available to small businesses during the COVID-19 crisis can be found at humboldtcountyiowa.com/covid-19/financial_resources.php