Congress Passes CARES Act for Coronavirus Relief
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was recently passed by Congress to address the economic fallout from the Coronavirus (COVID 19) epidemic. Here are some of the assistance programs for individuals and businesses.
Help For the Self-Employed and Those Working for Others
If you are self-employed or have lost time at work due to the Coronavirus Epidemic, you can apply for a number of different assistance programs through the California Development Department ( EDD).
Unemployment Insurance Benefits: UI benefits provide partial wage replacement to workers who are unemployed through no fault of their own. This includes you if you are self-employed and people whose place of work has closed or reduced their hours as well as parents who are home to care for their children whose schools have closed. This also includes those over 65 who were working and are now self-quarantined because they are “high-risk”. To file a claim click file an unemployment (UI) claim.
Disability Benefits: If you’re unable to work because you have COVID 19 or were exposed to COVID-19 (certified by a medical professional), you can file a Disability Insurance (DI) claim.
Paid Family Leave: If you’re unable to work because you are caring for an ill or quarantined family member regarding COVID-19 (certified by a medical professional), you can file a Paid Family Leave (PFL) claim.
Help For Businesses and the Self-Employed
Stimulus Package Small Business Loans
The official government site, SBA.gov, brings together all of the resources and guides for coronavirus-impacted businesses. We are reading up on these assistance programs so we can give you the latest information and help you with applying for them as well.
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
If you are interested in this Department of Treasury program, here is the application form and accompanying borrower guide. You will want to contact your local banker to discuss the lender guide to ensure they are aware of the program requirements. While it is our understanding that virtually all banks and credit unions will be able to process program applications, you should verify that your bank intends to support the program. We are available to assist in gathering the information required to apply for any of these programs.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan Advance of up to $10,000 that does NOT need to be paid back. Using the simplified online application, you will be applying for a low-interest loan which you don’t have to accept. Be sure to check the box to request the $10,000 grant that does NOT have to be paid back. And, even if you are denied the loan, you could still be eligible for the grant of $10,000 as long as there are funds still available. Be aware that there are stipulations on how the grant money should be spent.
The SBA Debt Relief Program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
Many more resources are available on the SBA site, including guidance for businesses and employers, government contracting information, and contacts for local assistance.
These resources may run out of funds quickly, so it is very imporant that you process your applications as soon as possible.