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How to Apply for a Coronavirus Small Business Loan Under the CARES Act

PPP COVID-19 Loan Offers for US Small Businesses

Coronavirus is the biggest bane of your existence in 2020 (and probably in your lifetime) — scary enough to shake the world economy and push governments into making unprecedented split-second moves. This is because failure to respond swiftly can mean an unbalanced ecosystem for citizens.

As a result, US small businesses feeling the heat of the COVID-19 can now breathe a sigh of relief after the March 27 move.

The Federal Government passed the CARES Act releasing over $375 billion to fund small business COVID-19 loans.

Under the Act, US merchants can now get access to several loan offers including the legacy SBA loans, among other provisional funding programs tailored for the Coronavirus outbreak.

Paycheck Protection Program Loans

The Paycheck Protection Program or PPP is one of the coronavirus small business loans to tap into. It allows a borrowing cap of up to $10 million, with possible loan clemency.

PPP offers incentives for firms to keep their staff on payroll and clemency is possible if you utilize the funding to maintain your workers.

The paycheck protection program loan is available in many banking institutions and credit unions.

To borrow, visit the Small Business Application’s website and download the PPP borrower application form. The page also lists everything you need to make a successful application.

Because of the influx of applications from devastated merchants, lenders are prioritizing their customers so it is best to apply with a finance provider.

Who is Eligible?

Under the CARES Act, this group of small businesses can apply for PPP COVID-19 loans;

  • All businesses with 500 or less workers. These include sole proprietorships, nonprofit firms, Veterans organizations, Tribal business concerns, self-employed persons, and independent contractors.
  • Businesses with over 500 workers from specific sectors can also apply if they meet SBA standards as listed in this page.
  • Accommodations & Food Services with NAICS Codes that start with 72 and has a more than a single physical shop and less than 500 per store.

Final Words

The first round of $376 billion funding for coronavirus small business loan ended on April 21, 2020 because the SBA ran out of funds. However, policymakers entered a deal to add a further $300 billion into Paycheck Protection Program loans.

Because many companies have been affected, be sure to double-check if your banking partner offers PPP loans to increase the chances of a successful PPP loan application.