In passing the CARES (Coronavirus Aid, Relief and Economic Security) Act, Congress did something extraordinary. Small businesses (those with 500 employees) may now apply for, essentially free money, in the form of forgivable loans through the Small Business Administration (SBA). Self-employed individuals are also eligible to apply for themselves.
The CARES Act has two major components. Both programs are designed for small businesses with less than 500 employees: The Payroll Protection Program (PPP) and The Economic Injury Disaster Loan (EIDL). Applications began on April 3, 2020 and self-employed individuals may begin applying on April 10, 2020. With Congress allocating only $349 billion towards these programs, it is expected that demand will far outpace supply. As a result, we are advising interested clients to immediately apply for these programs.
The attorneys at Mohamed Zain, LLP have been following the legal updates, have read and analyzed the CARES Act and other stimulus laws passed at local and state levels in order to properly advise our business clients. We are advising our clients through the application process, and are prepared to advise them through the process so that their business can survive the economic impacts of this global pandemic.
For more information, contact us today.