2020 CARES Act – Financial Supports for Small Business

Authors

Marilyn R. Schlake, University of Nebraska - LincolnFollow

Date of this Version

4-8-2020

Document Type

Article

Citation

Cornhusker Economics, April 8, 2020

https://agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2020 University of Nebraska.

Abstract

Whether a business is impacted by weather-related disasters, road construction or sudden economic downturns, having a plan to mitigate the impacts can be crucial to the immediate and long-term survival of the business. Unforeseen circumstances, such as the COVID-19 pandemic, may require owners to re-evaluate their business models, cut operating costs and seek outside financial supports – all to keep cash flowing and the business open. To help small businesses during the pandemic, the Coronavirus Aid Relief, and Economic Security (CARES) Act was signed into law on March 27. It contains $349 billion in relief for American small businesses and workers. Purpose and eligibility vary with each program so contact your local funder, Nebraska Business Development Center or the Small Business Administration (SBA) for the latest information on the CARES Act and application assistance.

Paycheck Protection Program (PPP) provides loan forgiveness for retaining employees or independent contractors during the COVID-19 crisis.

Economic Injury Disaster Loan (EIDL) & Emergency Economic Injury Grant provides an emergency advance up to $10,000 to small businesses and non-profits harmed by COVID-19.

SBA Express Bridge Loan allows a business owner who has a current relationship with an SBA lender to secure a quick turnaround loan of up to $25,000.

Small Business Debt Relief provides a financial reprieve to small businesses with non-disaster SBA loans during the COVID-19 pandemic.

Small Business Tax Provision provides tax relief for employers subject to closure or economic hardship due to government order limiting commerce, travel or group meetings or experiencing a greater than 50 percent reduction in quarterly receipts, measured on a year-over- year basis.