CARES Act – Economic Relief for Businesses During COVID-19 Emergency

There are new economic relief programs under the CARES Act that can help small septic services and portable restroom rental businesses through the challenging financial period brought on by the national emergency. These federal assistance programs can make it possible for your business to keep your workers on the payroll, by issuing free grants and low-interest long-term loans that can ultimately be forgiven.
Fortunately, septic businesses and portable restroom rental businesses may be recognized as essential services in most states. So, your company, unlike so many other types of businesses, is likely to be allowed to continue operations throughout the Corona Virus (COVID-19) national emergency. However, it’s well worth knowing about solutions for many septic and portable restroom services operators who may have serious concerns about the possible major effects of the pandemic on revenues and cash flow.

What’s the CARES Act, and How Does it Work?

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a new set of relief programs for businesses. The financial aid programs are soon to be rolled out and administered by the SBA. The CARES Act is the result of an emergency congressional initiative. It is designed to help workers stay employed through and after the COVID-19 national health crisis and to help the country recover from the economic impacts of the broad-scale shutdown of commerce during the emergency period.
Below is some key information about CARES Act options and benefits for small businesses. The Small Business Owner’s Guide to the CARES Act, from the US Senate, provides a clear detailed explanation of what the various options of financial aid programs offer to help business owners through the national COVID-19 emergency.
How Does the CARES Act Help Small Businesses?
CARES Act grant and loan programs will provide businesses with federal financial aid during the Corona Virus national emergency. Keep in touch with the SBA District Office in your area, to stay updated on dates that programs will start processing applications. Primary business emergency relief programs that the CARES Act will offer include:

Economic Injury Disaster Loans

EIDLs and several other options for financial aid are offered by the SBA under the CARES Act. An EIDL is a business loan for $2 million or less, with an interest rate of 3.75%. The first payment can be deferred for 6 months. Repayment terms up to 30 years are allowed.
Businesses with up to 500 employees can apply for the EIDL. Borrowers can use EIDL proceeds for a range of purposes, based on the discretion of the loan administrator. The loan is intended to pay expenses that the business owner could have covered without a loan, such as a payroll, if the COVID-19 pandemic had not impacted the business. Operating costs, including payroll, can be paid with EIDL proceeds.
Ask your local Small Business Development Center (SBDC), Women’s Business Center, or SCORE chapter for guidance when preparing to apply for the EIDL.

Emergency Economic Injury Grant

You are required to apply for the EIDL to receive the free grant funds. This federal grant offers small businesses an emergency cash infusion for $10,000 or less. The grant funds are disbursed in 3 days or under, after a business submits an EIDL loan application. The grant is free and does not need to be repaid at any point in the future.
The EEIG grant can be used for whatever needs your business may have, including paying workers payroll and sick leave, paying higher operating expenses caused by interruptions in regular suppliers’ operations, sick leave, paying rent and mortgage payments, debts, and other financial obligations of the business.

Paycheck Protection Program

If your business was operating by February 15, 2020, you are eligible to apply for a federal CARES Act PPP loan. This loan can be set retroactively to February 15. The PPP is designed to assist businesses in bringing workers back onto their payroll, even if they have already been removed because of the Corona Virus pandemic. All PPP loan applications must be presented by June 30, 2020.
The Paycheck Protection Program loan (PPP loan) can be provided by any financing source already designated as an SBA 7(a) lender. is designed to help you keep your employees on your payroll and to accelerate recovering of the national economy after the COVID-19 pandemic has subsided. Your federal PPP loan amount is 100% guaranteed by the U.S. government. A business is limited to one PPP loan.
The PPP loan principal and interest can be deferred for 6 to 12 months following the disbursement of loan proceeds. Loan repayment terms can be permitted to be as long as 10 years at a maximum interest rate of 4%. The PPP loan can be partially or even fully forgiven for businesses that use the funds to keep workers employed during the national emergency.
A calculation is made to determine an amount that can allow the business to sustain employees’ wages throughout the COVID-19 emergency period. The amount of the loan that can be forgiven is the total of the business’s payroll expense through the 8 weeks designated to be covered by the PPP loan, as compared to the prior year or timeframe. Loan forgiveness is not allowed for an employee’s pay amount above $100,000.

Sponsored Counseling for Business Owners

The SBA’s business counseling resources will be expanded under the CARES Act. This will provide important opportunities for owners to take advantage of free expert guidance on small business financial management through and after the economic crises brought on by the COVID-19 national health emergency, to help you identify strategies for managing through the economic difficulties, achieving sustainability over time, and regaining growth momentum following the emergency period.

Where Can I Get More Detailed Information on the CARES Act?

The Small Business Owner’s Guide to the CARES Act answers questions about which kinds of businesses qualify for CARES Act relief programs, loan sizes, eligible payroll costs, payroll costs not covered under the PPP loan, interest rates, fees, repayment terms. It explains PPP loan interest rates and fees, repayment terms, how CARES Act loans work along with your existing regular SBA loans.
NOTE: The guide also explains how to get information on tax provisions relevant to the CARES Act and answers important questions you may have on a range of other business topics related to the COVID-19 emergency.

SOURCES
https://www.sba.gov/sites/default/files/articles/EIDL_and_P3_4.1.2020_FINAL_2pm.pdf
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf

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