Content from The New York Times.
The federal stimulus bills enacted last month, including a bipartisan $2 trillion economic relief plan, offer help for the millions of American small businesses affected by the coronavirus pandemic.
The provisions include cash grants, low-interest loans and payments to offset eight weeks of payroll costs for businesses that retain workers or rehire those they have laid off. There are also enhancements to unemployment insurance and paid leave that affect small businesses.
Here are the answers to common questions about these programs. We’ll update this article as we learn more about the details.
More information on help, including details on the stimulus checks that many people will be receiving, can be found in our F.A.Q. for individuals about stimulus relief and our Hub for Help. If you have questions, or have applied for small business aid and can tell us how the process went, we’d love to hear from you.
Who is eligible for relief?
Businesses and nonprofit organizations with fewer than 500 workers are eligible for aid, including sole proprietorships, independent contractors and freelancers. Larger companies in some industries are also eligible.
Read the full article from The New York Times here.
What help is being offered?
There are two main federal aid programs, which are being managed by the Small Business Administration. Business owners can get help from both at the same time, but there are some restrictions.
The paycheck protection program is a forgivable loan intended to pay for eight weeks of a business’s payroll costs, so the company can retain workers or hire back those it has already laid off.
The government has also expanded the existing economic injury disaster loan program, which offers low-interest loans to cover most business expenses. A portion of those loans do not have to be paid back.