The coronavirus pandemic, with its accompanying shutdowns, has dramatically and negatively impacted small business (as well as large). Among the legislative enactments intended to help deal with the pandemic, the CARES Act includes provision for Emergency EIDL Grants which legislation allows qualifying small businesses to receive grants of up to $10,000. If you are a small business owner, affected by the pandemic, it may well be worth applying for a grant.
Covered businesses include those with fewer than 500 employees, sole proprietors, independent contractors and the like. The funds may be utilized for specific purposes, including: meeting payroll to retain employees; paying rent or mortgage for business property; covering paid sick leave for employees unable to work due to illness due to the pandemic; addressing increased costs due to interrupted supply chain; and repaying obligations that cannot be met due to revenue losses.
Although the grant may seem like no more than a drop in the bucket for larger businesses, many small businesses will find this a lifesaving (business saving) sum. Furthermore, the grant, though limited, is only one part of the legislation which permits much more substantial loans to the small business community of amounts up to $2,000,000. The receipt of an EIDL grant may affect an application for assistance under the related legislation for the payroll protection program. That program (PPP) carries with it the possibility of loan forgiveness but the receipt of an EIDL grant will reduce the potential amount of such forgiveness.
As you can see with this brief overview, the legislation is both complex and interrelated and so applicants should be certain to seek professional advice to make sure they make the most of the offerings. If your small business is suffering today, don’t delay obtaining advice and applying for the various forms of assistance available.