The Federal Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, that passed last month directs over two trillion dollars to provide economic relief as the coronavirus pandemic worsens in the United States.
Staffers from the office of U.S. Senate Majority Leader Mitch McConnell answered constituents’ questions regarding small business and unemployment benefits at a conference call hosted Monday by the Murray-Calloway County Chamber of Commerce.
A large portion of the funds from the CARES Act will go to small businesses and nonprofit organizations struggling as social distancing guidelines force them to close their doors. The Small Business Administration’s economic disaster relief program was activated as a tool to assist in the fight against the virus’s economic toll. The program allows small businesses and some nonprofit organizations to pay their daily expenses including payroll and facilities with low-interest federal loan dollars.
Tiffany Ge is the general counsel for McConnell. She said the loans are a saving grace for organizations with now-limited revenue streams.
“SBA disaster loans in general offer up to two million dollars in assistance and can provide vital economic support to small businesses to help overcome the loss of revenue you’re experiencing,” Ge explained.
Another primary avenue for business support during the COVID-19 pandemic is the Paycheck Protection Program, or PPP. The PPP seeks to keep workers off the unemployment line by providing businesses with loans to make payroll over the coming weeks. These loans are eligible for forgiveness if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Organizations with less than 500 employees are eligible to apply for the program. These employers may include sole proprietorships, independent contractors, self-employed persons, 501(c)(3) non-profit organizations, 501(c)(19) veterans organizations, or Tribal businesses. The loans are directed by the federal government, but lending takes place in local financial institutions, including banks and credit unions. Ge said McConnell’s office has been in close contact with lenders throughout the commonwealth to ensure swift administration of the program.
Those seeking more information on relief available to businesses during the coronavirus outbreak can visit Treasury.gov/CARES.
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