The federal government has just released the new CARES Act loans to ensure the proper running of small businesses around the country. The CARES Act loan for small businesses was brought into effect on 27th March 2020, and it states that it will provide loans to the business administrations.
The Goal of CARES Act for Small Businesses
The goal of the government is to provide as much facility as possible to small businesses across the country. The CARES Act loans cover the losses of small companies and make sure they can pay their debts on time, along with the extra costs.
Due to the coronavirus pandemic, various small businesses have been affected. However, the Small Business Administration has made the CARES Act loan available to ease the pressure of small businesses and their requirements. This will help them survive the pandemic.
Types of Programs Under CARES Act
There are primarily two types of loans available that include Economic Injury Disaster Loans (EIDL) and Paycheck Protection Loans (PPP). These loans are for small businesses with less than 500 employees. You can apply for both but can’t use funds for the same expenses. PPP loans help businesses to manage their payroll during this difficult time. The loan is to be used on payroll and should not be used for other expenses.
The primary advantage of this program is to reduce the requirement and increase the productivity of the businesses. It is good to apply for the CARES Act loan to help your business survive during this COVID-19 pandemic. However, make sure you are eligible before requesting the loan.
Buying the right commercial insurance can also secure your business during this difficult time. For assistance with all your business insurance needs, contact the experts at VGW Walker Insurance in Texas today. We look forward to helping you during the pandemic.
