Coronavirus and Emergency Funds for SMBs

Being the owner of a small business during a pandemic can get stressful. Living the uncertainty of whether your business will be able to stay afloat after the pandemic happens is one of the biggest challenges for the owners. If you are scared over the uncertainty of the current global situation, our experts at the 12 AM agency can help you be more clear and calm. 

The United States government has passed down the CARES Act will help employers keep employees on board amid the pandemic and economic crisis. More details will be released by the administration, but we do have important information for all small business owners. 

ALL YOU NEED TO KNOW ABOUT EMERGENCY FUNDS FOR SMBs 

Check if your Business Qualifies 

In order for your business to be eligible for the CARES Act, it needs to follow these details:

• Have less than 500 employees
• Meets the SBA’s size standard
• 501(c)(3) with fewer than 500 employees
• An individual that operates as a sole proprietor
• An individual that operates as an independent contractor
• Individual Self-employed who regularly carries any trade or businesses
• A tribal business concern that meets the SBA size standard
• A 501(c)(19) Veterans Organization that meets the SBA size standard

As with any loan, lenders will ask you to certify that the borrower will use the loan to retain workers and maintain payroll or make payments of mortgage, lease, and utility bills; the current global situation makes the loan request necessary to support ongoing operations. And finally, you need to certify that the borrower does not have an application pending for a loan duplicative for the amount and purpose applied for.

The borrower is eligible for loan forgiveness equal to the amount the borrower spent during the first 8-week period beginning on the date of the origination of the loan, such as payroll costs, interest on the mortgage obligation incurred in the ordinary course of business, rent or leasing agreements and payment of utilities. 

GET INFORMED WITH THE HELP OF 12 AM AGENCY