Small Businesses can get Cash through the CARES Act
President Trump signed the CARES Act on Friday, March 27, 2020. Two ways small businesses can access cash are through the Small Business Administration's (SBA) Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program. The CARES Act allocates an additional $10 billion to EIDLs and $349 billion to the Paycheck Protection Program.
EIDLs are not new but the COVID-19 pandemic has made businesses in every state and territory eligible for them. Specific terms apply and business can apply here. The Paycheck Protection Program allows small businesses to obtain loans through local lenders. Both programs have generous loan forgiveness provisions if business use the money in certain ways.
For more information, we recommend the following resources:
Forbes summarized these aspects of the CARES Act in more detail which may be helpful in understanding the bill. Click here to read Forbes' summary.
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