How to Apply for Congress’s CARES Act Funding
Senator Mitt Romeny just concluded a call with Chambers across the state. In the call, he reviewed the two types of business funding available through the Congress CARES Act. He did stress that there is a “first-mover advantage” meaning there is not enough money for all businesses. The first to apply have a better chance to receive funding. This means apply asap!
What loans are available to small businesses?
• The Economic Injury Disaster Loan (EIDL) program. The SBA approved the entire state of Utah as a “disaster area,” allowing eligible small businesses and private nonprofits across our state affected by COVID-19 to apply for disaster relief loans. An SBA EIDL loan provides a working capital loan of up to $2 million. benefits.gov
• The Paycheck Protection Program (PPP) was established by Congress in the CARES Act and provides 100% federally-guaranteed loans to eligible small businesses and nonprofits. Loan payments are deferrable for at least six months and up to a year. The maximum loan amount is determined by a business’s average payroll costs, up to $10 million. Portions of the loan may be forgiven if an employer maintains its payroll and employees during COVID-19.
What grants are available to small businesses?
• The Emergency EIDL Grant Program was created by Congress in the CARES Act and advances up to $10,000 of an EIDL loan to be available within 3-days from when the SBA receives an application. Grant recipients are not required to repay advance payments, even if subsequently denied for an EIDL loan. If a small business receives an EIDL loan, the grant will reduce the amount of such loan.
How do you apply for funding through the EIDL/PPP programs?
• EIDL loans and grants will be disbursed directly by SBA. PPP loans will be disbursed by existing and newly approved SBA lenders.
• Many Utah Banks and Credit Unions are already SBA-approved lenders and can choose to participate in the PPP loan program. Speak to your lender or visit the SBA’s Lender Match website to find a qualified lender.