The Impact of New Coronavirus Relief Bill on Small Businesses

1
The Impact of New Coronavirus Relief Bill on
Small Businesses
2
Congress has established the details of new
coronavirus relief bill this Wednesday, and
unanimously passed a 2 trillion emergency relief
package (also known as HR 748/the CARES Act) as
economic support for small businesses, health
care industry and struggling sectors of the
economy in response to the growing coronavirus
outbreak. This relief bill is the third
legislative package to deal with the coronavirus
outbreak. The coronavirus relief bill provides
direct cash payments, loan guarantees for
impacted businesses and resources to test and
develop vaccines for the covid19.
3
The coronavirus outbreak has significantly
affected small businesses, causing them to close
down or curbing working hours. Most small
businesses are unable to make ends meet since
people are restricted to their homes and income
is inadequate. The need for such relief bill in
the form of grants and low-interest business
loans is unparalleled in its complexity and
extent. Having said that, its critical to
understand how this new coronavirus relief bill
will affect small businesses and how it will be
allocated for small businesses by the federal
government. Here is an overview of this relief
bill and the impact on small businesses.
WWW.ONLINECHECK.COM
4
Small Business Loans for Affected Businesses
WWW.ONLINECHECK.COM
The relief bill includes more than 350 billion
allocated specifically as small business loans
for businesses affected by the covid-19 outbreak.
The distribution of small business loans is
outlined under the Keeping American Workers Paid
and Employed Act as part of the bigger CARES Act.
5
OUR ADVANTAGES
Paycheck Protection Program
At vero accusamus iusto odio dignissimos ducimus
qui blanditiis prae voluptatum
Description
Paycheck Protection Program is the new initiative
under the SBA 7(a) loan program and most funding
will go towards it. According to this program,
350 billion will be allocated to small business
owners, self-employed individuals, nonprofits,
gig economy workers, and tribal businesses.
Description
At vero accusamus iusto odio dignissimos ducimus
qui blanditiis prae voluptatum
Description
At vero accusamus iusto odio dignissimos ducimus
qui blanditiis prae voluptatum
WWW.ONLINECHECK.COM
6
These small business loans will be instantly
available through current SBA-certified lenders,
and the SBA will continue to bring additional
lenders into the program. According to the U.S.
Senate Committee on Small Business and
Entrepreneurship, the Paycheck Protection Program
is created to provide cash flow for eight weeks
via 100 federally guaranteed loans to small
businesses who preserve their workforce during
this emergency period (from February 15, 2020, to
June 30, 2020). While preserving the workforce,
the loan is used to cover payroll costs, mortgage
interest payments, and utilities.
7
The loan size would equal 250 of an employers
average monthly salary, with a maximum loan
amount of 10 million and the payroll costs will
include salary, wages, cash tips, insurance
premiums and covered leave. There are no
prepayment penalties and the costs of
participation are reduced due to fee waivers. The
automatic deferment of payments is up to one
year, and no credit test, personal guarantee, or
collateral will be required. The SBA Express loan
amounts increased from 350,000 to 1 million and
the interest rates will not exceed 4 during the
emergency period.
8
Emergency EIDL Grants
The amount of 10 billion will be allocated to
the SBAs Emergency Injury Disaster Loan program.
This will allow for extended entitlement for
businesses experiencing financial difficulty due
to the coronavirus and provides the SBA more
flexibility to distribute small-dollar
loans directly. 
Small businesses can also apply for an emergency
grant of 10,000 to help cover payroll, provide
sick leave, and oblige other debt obligations.
The emergency loan will be delivered within three
days of approval.
WWW.ONLINECHECK.COM
9
Small Business Debt Relief
With the help of the Small Business Debt Relief
Program, affected businesses can secure 17
billion to pay all the principal, interest, and
fees on their existing SBA loan products for six
months.
Bram Gwen
At vero eos et accusamus iusto odio dignissimos
ducimus qui blanditiis praesentium voluptatum
deleniti atque corrupti quos dolores et quas
molestias excepturi.
WWW.ONLINECHECK.COM
10
Funding to SBA Resource Partners
The SBA resource partners, including Small
Business Development Centers, Womens Business
Centers, and Minority Business Centers will also
get funding so they can provide counseling,
education, and technical assistance to affected
businesses.
11
The major cause of coronavirus outbreak is the
major layoff of employees from businesses. Most
businesses were unable to sustain their workforce
due to cash flow crises caused by the coronavirus
outbreak. As part of this bill, the unemployment
insurance program is extended for laid-off
workers that will allow for four months of full
pay, with the maximum unemployment insurance
benefit up to 600 per week. The benefit applies
to traditional business workers along with
self-employed and gig economy workers. The
purpose of this benefit is to help American
workers endure the layoff until businesses become
sustainable and are able to hire them back.
12
When the New Relief Bill Takes Effect?
The Senate leaders have passed the bill and
submitted its version on March 25. But, the House
is expected to vote on the bill, yet. According
to House Speaker Nancy Pelosi, D-Calif., the
House will take up the legislation with strong
bipartisan support. The bill will reach President
Trumps desk for legislation signing after the
House passes the bill collectively. Most of the
House Republicans leaders are commending their
members to vote in favor of the bill. Once it is
passed, the funds will be released to struggling
industries, direct cash payments to Americans
with a significant boost to unemployment
insurance.