As several small businesses are forced to shut down during the COVID-19 outbreak, the US Government has taken some initiatives to help small businesses survive the pandemic. One such initiative is the CARES (Coronavirus Aid, Relief, and Economic Security) Act, which was passed on March 25, 2020. The first round provided $349 billion in Small Business Administration (SBA) loans. After exhausting thethe care act loans,
cares act loans for small business,
care act loans small business funding within 2 weeks, on April 24, 2020 another $310 billion of funding was added.

The main objective of the CARES Act loan is to financially help small businesses so that they can still pay their employees, rent, and other business costs.

How Can Small Businesses Get Relief from the CARES Act?

There are two types of CARES Act loans available:

1. Economic Injury Disaster Loans (EIDL)

2. Paycheck Protection Loans (PPP)

You can apply to one or both loans depending on the exact needs of your company. Here is what you should know about the CARES Act loans:

  • A business with less than 500 employees, non-profit, and veterans’ organizations in any US state can apply for the loans.
  • EIDL loans can provide up to $2 million, while the PPP loans can provide up to $10 million.
  • You can request a $10,000 working capital grant when applying for an EIDL loan that does not have to be repaid.
  • For 8 weeks after the loan is secured you have to track all expenses. After that, you need to return the appropriate amount to the lender.

How Do I Qualify for the CARES Act Loan?

To qualify for the CARES act loan, you:

  • Cannot receive paid leave or telework
  • Must be ineligible for any other state or federal unemployment benefits
  • Must be unemployed, partially unemployed, or cannot work due to the COVID- 19 pandemic

This loan will help your business survive during this COVID- 19 pandemic. However, getting the right commercial insurance is another way to secure your business. For assistance with all your business insurance needs, contact the experts at Weaver & Associates in Arcadia, California. Our team is available for you even during the pandemic.