CDC New England: Small business owner's guide to the CARES Act

Submitted by tim on Mon, 03/30/2020 - 09:58

CDC New England On March 27th, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act with programs and initiatives intended to assist business owners. The Small Business Owner's Guide to the CARES Act provides an excellent summary about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs. The Guide was prepared by the office of Senator Ben Cardin, who is a ranking member on the Senate small business committee.

The SBA programs include:

Paycheck Protection Program (PPP)* up to $10 million
SBA Economic Injury Disaster Loan (EIDL) up to $2 million
EIDL Emergency Grants of up to $10,000

*PPP is not yet available but is expected to be available this week

Click here to see a chart that shows a comparison of these programs.

Application Process:

SBA is only accepting applications for the SBA Economic Injury Disaster Loan program (EIDL). Business owners can apply at https://disasterloan.sba.gov/ela/. However, before accepting a loan, a comparison to the PPP should be made. The two loans (PPP and EIDL) cannot be used for the same purpose.

Timeline:

The Paycheck Protection Program (PPP) will be provided through SBA preferred lenders, such as banks and credit unions. BDC Capital is an SBA preferred lender.

The SBA plans to release program rules this week and go live in early April. Until specific guidelines are published, lenders do not have the information available to process applications. So, at a minimum, it will be at least 1-2 weeks before the first application can be processed.

SBA 504 Loan Deferments:

For existing borrowers with SBA 504 loans, SBA has issued guidelines on loan deferments. CDC New England, an SBA 504 loan provider, is actively assisting our borrowers with SBA 504 loan deferments up to 6 months.

We will continue to provide updates as we receive guidance from SBA. We are available to answer any questions you may have. Be safe.

Contact CDC New England:

Paul F. Flynn, Jr., President & CEO

(781) 928-1133
(617) 921-2695 (cell)
[email protected]

Mike Topalian, Managing Director, Sales & Marketing

Territories: Massachusetts, New Hampshire, & Connecticut
(781) 928-1122
(508) 612-5661 (cell)

[email protected]

Carol Brennan
Territories: Massachusetts, Connecticut, & Rhode Island

(401) 450-0047
(413) 237-6648 (cell)
[email protected]

Nancy Gibeau

Territories: Massachusetts, Connecticut, & Rhode Isltor, Sales &and

(508) 254-7891
[email protected]