Small Business CARES Act
The U.S. Economic Development Administration (EDA) has released their Notice of Funding Opportunity (NOFO) for their $1.5 billion supplemental appropriation from the CARES Act. You can read and download the full announcement and package here, and you can download the CARES Act specific portion here. We advise that you spend some time reading through all of the documents, especially if you are new to partnering with EDA.
Visit grants.gov for the full list of details and instructions.
(April 24, 2020) USDA’s Under Secretary for Farm Production and Conservation Bill Northey and Deputy Under Secretary for Rural Development Bette Brand today held a joint announcement to provide guidance from the respective agencies on the resources provided in the Paycheck Protection Program and Health Care Enhancement Act (HR.266) recently passed by Congress and signed into law by President Trump. | Stakeholder Announcement
The program and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) act that was passed by Congress are intended to assist business owners with whatever needs they have right now. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA.
To keep up to date on when these programs become available, please stay in contact with your local SBA District Office, which you can locate here.
SBA Paycheck Protection Program (PPP)
- Summary of Program: The SBA PPP is a new federal $350 billion loan program at SBA for small businesses, self-employed people, and gig workers to help them from going under due to the COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.
- Why this might make sense for you: If a self-employed person needs compensation or a business or nonprofit needs funds for employee compensation, including: salaries, wages, commissions, or similar compensation; cash tips or equivalents; vacation, parental, family, medical, or sick leave; payment required for providing group health care benefits (including insurance premiums); payment of retirement benefits; and payroll taxes. Funding may also be used for payment of interest on mortgage obligations, rent, utilities, and interest on pre-existing debt obligations
The SBA, in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act).
This document will be updated on a regular basis. Read the current FAQs here.
- Calculate your PPP Maximum Loan Amount by Business Type
- Seasonal Businesses Guidance
- What happens when the lender approves and disburses my loan?
For more information, visit www.sba.gov/paycheckprotection
SBA ECONOMIC INJURY DISASTER LOAN (EIDL)
SBA Economic Injury Disaster Loan (EIDL) – all Minnesota small businesses should apply for these!
- Summary of Program: Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years.
- Why this might make sense for you: The SBA EIDL can be used to maintain payroll, provide paid sick leave, meet increased costs, make rent or mortgage payments, as well as repay unmet expenses and obligations.
- SBA EIDL Grants - Businesses applying for an EIDL loan can request up to $10,000 be disbursed immediately. The amount need not be repaid, regardless of the loan decision. The request for the grant must be made within 3 days of applying to the SBA EIDL program.
- Why this might make sense to you: This advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.