The State of Texas recently published updates regarding the Coronavirus Aid, Relief, and Economic Security (CARES) Act and related assistance regarding COVID-19 for small businesses.
Passed by Congress on March 27, 2020, the programs and initiatives in the CARES Act are intended to assist business owners and nonprofits with the capital they need due to the COVID-19 crisis. The U.S. Small Business Administration (SBA) and the U.S. Department of Treasury expect to have this program up and running by April 3, 2020, so that businesses can contact a participating SBA 7(a) lender, bank or credit union, apply for a loan, and be approved on the same day.
For more information, download the Small Business Owner’s Guide to the CARES Act.
The CARES Act established a $349 billion SBA-backed Paycheck Protection Program (PPP) to provide immediate access to capital for small businesses who have been impacted by COVID-19.
The PPP is specifically designed to help small businesses keep their workforce employed and assist with payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees or SBA fees. All loan payments will be deferred for six months. Most importantly, if employers maintain their payroll, certain portions of the loans can be forgiven, such as payroll costs, interest on mortgage obligations, rent and utility payments.
Loans will be available through more than 135 existing SBA-certified lenders in Texas, including banks, credit unions and other financial institutions.
• Find out when you can apply: Treasury factsheet• Find more information regarding PPP and loan requirements: SBA.gov/Coronavirus
Another component of the CARES Act allows small businesses and non-profits to receive up to a $10,000 advance on an Economic Injury Disaster Loan even if a previous application was declined or still pending. For more information, visit the SBA’s website and apply for the loan advance.
The State of Texas urges business owners to continue to check for news and updates online at the Governor’s Coronavirus Information for Businesses page. For additional information on Texas’ response to COVID-19, visit the Governor’s Office Coronavirus page.