Federal, state, and local governments are offering no or low cost loans and grant programs to help small businesses.
CARES Act Update
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress on March 27, 2020. The programs and initiatives in the Act are intended to assist business owners and nonprofits with current needs due to the COVID-19 crisis. Due to the CARES Act, small businesses and non-profits can get up to a $10,000 advance on an EIDL, even if a previous application was declined or still pending.
An expansion of unemployment insurance for retail workers to 39 weeks instead of the usual 26; recipients will receive an extra $600 per week in addition to the standard amount in their states, payable immediately.
Relief for retail workers and consumers including one-time checks of $1,200 per adult and $500 per child.
Tax Relief, including an estimated $15 billion from fixing the "retail glitch" in the 2017 tax reform law, the ability to "carry back" this year’s losses to profitable years and obtain a refund, an Employee Retention Tax Credit to encourage retail businesses to keep employees on the payroll, and expanded deduction of interest paid on retail business loans.
The U.S. Small Business Administration (SBA) granted Texas’ Economic Injury Disaster Loan (EIDL) assistance declaration, making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).
Small businesses who believe they may be eligible for an SBA EIDL, should visit the SBA’s website where they can directly apply for assistance. The online application is the fastest method to receive a decision about loan eligibility.
Paycheck Protection Program Update
The CARES Act also established a $349 billion SBA-backed Paycheck Protection Program (PPP) to provide immediate access to capital for small businesses who have been impacted by COVID-19. Small businesses can now apply for a PPP loan through a local lender. For loan requirements and to find a lender near you, visit the SBA’s website.
All forms and application details for COVID-19 related SBA loans and funds are available on the SBA Disaster Loan website: www.sba.gov/disaster.