Stimulus for Small Businesses – Emergency Grants up to $10,000 for Small Businesses that Apply for Disaster Loans from the Small Business Administration
The Corona Aid, Relief, and Economic Security Act referred to as the CARES Act provides for Emergency Grants of up to $10,000, for small businesses including corporations, LLCs, partnerships, sole proprietors, not for profits, and certain other organizations with 1 to 500 employees, including self-employed individuals working at 1 person companies. The Grants can be obtained within 3 days. To be eligible, the small business must apply for a Disaster Loan from a lender that makes Small Business Administration (“SBA”) loans. The Emergency Grant funds must be used for providing paid sick leave to employees unable to work due to the direct effect of COVID-19; maintaining payroll to retain employees during business disruptions or substantial slowdowns; meeting increased costs to obtain materials unavailable from the small business’ original source due to interrupted supply chains; making rent or mortgage payments; and repaying obligations that cannot be met due to revenue losses. The small business cannot be required to repay any amounts of an Emergency Grant even if the application for the Disaster Loan from the Small Business Administration is ultimately denied. Congress has approved $10 billion for emergency Grants and Disaster Loans. The amount of the Emergency Grant shall be reduced from the loan forgiveness amount for any loan for Payroll Costs received by the small business under the Paycheck Protection Loan provisions of the CARES Act. Please refer to my Blog Post entitled “Stimulus for Small Businesses – Non-Recourse Paycheck Protection Loans under the CARES Act” for more information related to the loan forgiveness provisions of the program.
Please contact the skilled attorneys at Bruning & Associates, P.C. at 815-455-3000 if you have questions regarding Emergency Grants.
Click here to learn more about managing attorney Kevin Bruning.