Funding Support for Businesses Available Through the CARES Act
Monday, March 30, 2020
Posted by: Jeff Couture
The Coronavirus Aid, Relief, and Economic Security (CARES) Act recently passed by Congress creates three additional programs available to small businesses and non-profits with fewer than 500 employees, and self-employed individuals:
The Paycheck Protection Program will lend businesses 250% of the average monthly payroll from early 2019 (2/15/19-6/30/19). This is provided as a loan, payable over 10 years at a fixed interest rate of up to 4%. Depending on the number of people employed later this year, some or all of this debt will be forgiven up to eight weeks of a business’s 2020 payroll, benefit, rent, and utility expenses.
If you are self-employed and earned money in 2019 between February 15 and June 30, you can borrow two and a half months of your average earnings, up to $20,800.
The Small Business Debt Relief Program will cover the next six monthly payments on most SBA guaranteed loans, including new loans.
The Economic Injury Disaster Loan and Emergency Economic Injury Grant Program provides an emergency grant of $10,000 and an expedited SBA Loan application process for eligible businesses and individuals This is an alternative to the Paycheck Protection Plan and is set up to provide the $10,000 within three days of applying for the loan/grant.
You can find more information from the SBA on these programs, and other coronavirus information for businesses on The Vermont Agency of Commerce and Community Development (ACCD) website, COVID-19 Guidance for Vermont Businesses: