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Dear Neighbor, Small businesses across our country are hurting. While the most important thing we can do right now is practice physical distancing to hopefully contain the spread of COVID-19, Congress recognizes that small business are in need in of emergency assistance in the coming months. I want to make sure you are aware of two very important programs that were included in the CARES Act to help small businesses keep employees on payroll, provide sick leave, and cover rent, mortgage, and utility payments. Paycheck Protection Plan The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by directing $349 billion towards job retention and business operating expenses. This program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses. If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable. Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. More information on the Paycheck Protection Plan is available here. Economic Injury Disaster Loan (EIDL) In response to COVID-19, 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. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application and the loan advance will not have to be repaid. The streamlined application for the Loan Advance is available here. Please note: If you apply for an EIDL grant and immediate assistance, you can still apply for a Paycheck Protection loan. However, the amount forgiven under a Paycheck Protection loan will be decreased by the $10,000 grant. You can find local SBA assistance here and an explanation of the Paycheck Protection Program and EIDL here. The CARES Act also provided $275 million in grants to the nation’s network of Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs), as well as the Minority Business Development Agency’s Business Centers (MBDCs), to provide mentorship, guidance and expertise to small businesses. Mason SBDC Small Business Development Center 4031 University Drive, Ste. 100 Fairfax, VA 22030 (703)-261-4105 SBDC at Community Business Partnership Small Business Development Center 6564 Loisdale Road, Suite 600 Springfield, VA 22150 703-768-1440 My office is also here to help. Please be sure to check out the Resource Guides my team and I put together, as well as the Coronavirus Information page on my website. If you have any questions, please contact us at 703-256-3071. Sincerely,
Member of Congress |
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