Coronavirus Aid, Relief, and Economic Security Act is lifeline to businesses impacted by COVID-19
On Friday, March 27, the Coronavirus Aid, Relief, and Economic Security, or CARES, Act was signed into law to help support businesses and families through the on-going novel coronavirus (COVID-19) pandemic. This is an estimated $2 trillion package, which specifically allots $10 Billion for Economic Injury Disaster Loans (EIDLs) and $350 billion for Paycheck Protection Loans (PPP) to help small businesses. And while it sounds like an exorbitant amount of money, this funding will be in high demand across the country, and will likely be distributed quickly.
There are several programs available and depending on your needs, one may be right for you. Prospective applicants are encouraged to contact an SBA lender like Fidelity Bank, to begin the process right away.
Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing billions of dollars toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
Economic Injury Disaster Loans and Loan Advance
Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
Are there additional SBA programs available for businesses impacted by the COVID-19 pandemic?
Yes. Additional information can be found in the SBA’s Coronavirus (COVID-19): Small Business Guidance & Loan Resources.
Fidelity Bank has built a strong history as trusted advisors to customers served, and is proud to be an active member of the community of Northeastern Pennsylvania. With 12 branches located throughout Lackawanna and Luzerne Counties, Fidelity Bank offers full-service Trust & Investment Departments, a mortgage center, and an array of personal and business banking products and services. The Bank provides 24 hour, 7 day a week service to customers through a variety of digital banking tools, branch offices, online at www.bankatfidelity.com, and through the Customer Care Center at 1-800-388-4380.
Daniel J. Santaniello, President, and CEO, of Fidelity Bank, publishes Financially Fit with Fidelity, your guide to financial well-being, every Thursday. If you’re interested in a financial topic we haven’t yet covered or want to subscribe to our emails, please feel free to drop us a line at blog at fddbank dot com. We would love to hear from you.