Who qualifies for small business loan cares act

## Who Qualifies for Small Business Loan CARES Act?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020, in response to the economic impact of the COVID-19 pandemic. The CARES Act includes several provisions to help small businesses, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

**Paycheck Protection Program**

The PPP is a loan program that provides small businesses with loans to cover payroll costs, including salaries, health insurance premiums, and employee benefits. The loans are forgivable if certain criteria are met, such as retaining employees and using the funds for eligible expenses.

To qualify for a PPP loan, a business must meet the following criteria:

* Be a small business with 500 or fewer employees
* Be a for-profit business
* Have been in operation since February 15, 2020
* Have had average monthly payroll expenses of less than $10 million in calendar year 2019

**Economic Injury Disaster Loans**

EIDLs are loans that are provided to small businesses to help them cover the costs of operating during a disaster, such as the COVID-19 pandemic. The loans can be used for working capital, inventory, and other business expenses.

To qualify for an EIDL, a business must meet the following criteria:

* Be a small business with 500 or fewer employees
* Be a for-profit business
* Have been in operation since January 31, 2020
* Have suffered a substantial economic injury as a result of the COVID-19 pandemic

**Other Qualifications**

In addition to the general qualifications listed above, there are other qualifications that may apply to specific small business loan programs under the CARES Act. For example, some programs may require businesses to be located in a specific geographic area or to be in a certain industry.

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It is important to note that the CARES Act is a complex piece of legislation and the eligibility criteria for specific loan programs may change over time. If you are interested in applying for a small business loan under the CARES Act, it is important to consult with a qualified financial advisor to determine if you qualify.

**How to Apply**

If you believe you qualify for a small business loan under the CARES Act, you can apply through the Small Business Administration (SBA). The SBA has a number of resources available to help you understand the different loan programs and apply for a loan.

You can apply for a PPP loan through a participating lender. A list of participating lenders can be found on the SBA website. You can apply for an EIDL directly through the SBA.

**Additional Resources**

* [Small Business Administration (SBA)](https://www.sba.gov/)
* [Paycheck Protection Program (PPP)](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program)
* [Economic Injury Disaster Loans (EIDL)](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans)

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