Small Business Resources in the CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides financial resources for small business in the form of loans, grants, and debt relief.
Information about individual programs can be found in this section.
Paycheck Protection Program
- Borrower Information Sheet
- FAQs - Updated 05.13.20
- Find a Lender
- Sample Forgiveness Calculator
SBA Economic Injury Disaster Loan
Paycheck Protection Program – LAST DAY FOR APPROVAL IS 6/30
The Paycheck Protection Program (PPP) was replenished on April 24 and reopened to applicants on April 27.
As of June 8, $130b remains in the fund, so consider applying today.
Recent legislation also provides more flexibility in the program, including:
- Extending the time to spend loan funds from 8 weeks to 24 weeks
- Expanding the percentage of funds that can be used to cover non-payroll expenses
In order to apply for this program, you must work with an eligible lending institution (bank, credit union, etc.). If you haven't already, contact your bank TODAY to start the process. If your lender is not participating in this program, you may be able to work with one of these lenders accepting new customers:
You can also find eligible lenders here: https://www.sba.gov/paycheckprotection/find
Lenders may require different documentation. Here is a SAMPLE list of required documents: https://letstalk.mercergov.org/5278/widgets/17360/documents/10875
Make sure to check with your bank or credit union to confirm the documents they require.
Key Program Highlights
- All small businesses with 500 or fewer employees are eligible to apply. This includes nonprofits, veterans organizations, and Tribal businesses as well as self-employed individuals, sole proprietorships, and independent contractors.
- Loans will be fully forgiven as long as they are used for payroll costs, interest on mortgages, rent, and utilities.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
According to the Washington Small Business Development Center (WSBDC), SBA lending institutions may require the following additional documentation:
- To prove your business was in operation as of February 15, 2020, obtain a Certificate of Good Standing from the state's Office of Secretary dated within the last 90 days.
- To verify your business had employees for whom you paid salaries and taxes, please provide one of the following:
- A State Unemployment form 940 (annual) or 941 (seasonal);
- A current CPA prepared financial statement; or
- A current CPA statement validating the borrower paid salaries and payroll tax.
- To verify the calculation of the loan amount, provide financial information and/or statements that demonstrate how the loan amount was calculated.
Watch the video linked above for a comprehensive overview of the program and requirements. You can also find the following PPP documents on Let’s Talk:
Follow this link to find the application: www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
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SBA Economic Injury Disaster Loan Assistance
UPDATE: At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Have you applied for the US Small Business Administration’s Economic Injury Disaster Loan (EIDL) program yet? This low-interest loan provides relief for small businesses directly impacted by the COVID-19 outbreak.
Apply here: https://covid19relief.sba.gov/#/
The Washington Small Business Development Center (WSBDC) encourages ALL small businesses to apply for this program. There is NO fee associated with applying, and you are not required to accept the loan once approved.
Watch the video linked in this article for a summary of the program and a walk-through of the brief online application. The updated application also now includes an option to request a loan advance of up to $10,000. While official guidelines have not been released yet, this initial disbursement will likely be forgiven from your overall loan. Apply TODAY to be considered for the loan and to access the advance.
Did you apply for the EIDL before the loan advance was made available? You can still access this initial disbursement opportunity! Simply apply using the updated application link above and select "I would like to be considered for an advance of up to $10,000" at the end of the application.
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The City of Mercer Island wants to support local businesses during this uncertain time. Contact Sarah Bluvas, Small Business Liaison, at firstname.lastname@example.org to let us know how we can help.