This information is provided by the Governor’s Economic Development & Tourism Office
The 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.
Following President Trump’s signing of the CARES Act, the U.S. Small Business Administration (SBA) and the U.S. Department of Treasury announced a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.
The Treasury and SBA expect to have this program up and running by April 3, 2020, so that businesses can contact a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.
For a comprehensive guide on most of the small business provisions and programs included in the CARES Act, download the Small Business Owner’s Guide to the CARES Act.
The CARES Act 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.
The PPP is specifically designed to help small businesses keep their workforce employed and assist with payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees or SBA fees. All loan payments will be deferred for six months. Most importantly, if employers maintain their payroll, certain portions of the loans can be forgiven, including payroll, interest on mortgage obligations, rent and utility payments.
Loans will be available through more than 135 existing SBA-certified lenders in Texas, including banks, credit unions and other financial institutions.
Due to the CARES Act, small businesses and non-profits can get up to a $10,000 advance on an Economic Injury Disaster Loan even if a previous application was declined or still pending. For more information, visit the SBA’s website and apply for the loan advance here.
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