Covid-19 Update

Congress recently passed the CARES Act which allows small businesses to apply for loans and/or grant's during the Covid 19 pandemic.

The two loans that have been discussed the most are the Payroll Protection Plan (PPP) and the Economic Injury Disaster Loan program. (EIDL).

The PPP is intended to loan small businesses money so they can continue to employ their workers during the Covid 19 crisis. The loan amount is calculated at 2.5x a typical month's payroll and expenses (rent, leases, mortgages, utilities, etc). To qualify a business must have fewer than 500 employees and their business has to have been negatively impacted by the Covid 19 pandemic. The full amount of this loan can become a grant if the employer, over the 10 week period of the loan, spends the money on the designated expenses (salaries, mortgages,  rent, leases, utilities), does not fire/layoff any employees and keeps the employees compensation at no less than 75% of what it was before the pandemic. There is even a way for an employee to rehire laid off employees or catch up their wages so that the employer's PPP loan converts into a grant. 

A small business can apply for the PPP through a local bank.

The EIDL is emergency money available for small businesses and since the entire country has been declared an emergency zone, every small business can apply! The first $10,000 of the loan does not need to be paid back. The SBA claims the money will be direct deposited in the business bank account within a few days of their application being granted. A small business that applies is assumed to be eligible. The initial $10,000 can be used for the same expenses as the PPP but then your PPP loan will be reduced by the $10,000 you received under the EIDL. The remainder of the loan money received is a low interest loan. A business can apply for the EIDL directly on the Small Business Association website at

These loans are new or have been newly revised so there is still some confusion and delay in getting the money out to small businesses. If you have not applied yet, it is not too late! Get your application in today. 

Additional information about these loan programs can be found here:

Paycheck Protection Program FAQs for Small Businesses
Small Business Owners Guide to the CARES Act