A number of new measures are designed to provide financial relief to small businesses and their employees affected by COVID-19. As a company committed to helping small businesses thrive, Travelers is sharing a list of financial programs designed to help small businesses.
The CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains $376 billion in relief for U.S. workers and small businesses with several new temporary programs to address the COVID-19 outbreak, including economic injury disaster loans and bridge loans.
Paycheck Protection Program
What is it?
The Paycheck Protection Program is a forgivable loan from the Small Business Administration (SBA) designed to create a direct incentive for small businesses to keep their employees on the payroll.
- Eligible businesses may obtain financing of up to $10 million as determined by average payroll amounts in the previous eight weeks preceding the application date.
- Money can be used for payroll, rent, mortgage interest, or utilities. At least 75% of the forgiven amount must have been used for payroll.
- Loan repayments are deferred for six months.
- If you keep your workforce intact, the amount that covers the eight-week payroll period will be forgiven.
- Neither the government nor lenders will charge small businesses any fees.
- The loan has a maturity of 2 years and an interest rate of 0.5%.
Who is Eligible?
According to the SBA, the following entities affected by Coronavirus (COVID-19) may be eligible: Read more