We know that small businesses in our neighborhood are struggling during this crazy COVID-19 crisis. Recently, the federal government enacted the CARES act – which helps to provide unemployment compensation to people not normally covered under regular Massachusetts unemployment law. We’re talking to you people self-employed or paid by 1099’s. Here is some helpful information from the US Chamber of Commerce.
Paycheck Protection Program
The Paycheck Protection Program, one of the largest sections of the CARES Act, is the most important provision in the new stimulus bill for most small businesses. This new program sets aside $350 billion in government-backed loans from private banks that can, in some cases, be converted to grants, which means that if you meet the requirements you won’t need to pay the loan back.
What types of businesses are eligible?
The Paycheck Protection Program offers loans for small businesses with fewer than 500 employees, select types of businesses with fewer than 1,500 employees, 501(c)(3) non-profits with fewer than 500 workers and some 501(c)(19) veteran organizations. Additionally, the self-employed, sole proprietors, and freelance and gig economy workers are also eligible to apply. Businesses, even without a personal guarantee or collateral, can get a loan as long as they were operational on February 15, 2020.
You apply for these loans directly through the SBA at www.SBA.gov/disaster.
Here’s some more helpful info from the US Chamber of Commerce:
Also, Forbes has a great article about this if you’d like to learn more!