We hope you and your family are doing well. We know you are inundated with information right now, so we wanted to offer you our staff’s curated list of what we consider the most important information for startups and small businesses to know and act on this week.
How small businesses can leverage the CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal package of measures that seeks to provide economic support to the business sector, employees, individuals, and families in response to the COVID-19 pandemic.
The following types of businesses qualify for assistance:
- Small businesses with fewer than 500 employees
- Small businesses that otherwise meet the SBA’s size standard
- 501(c)(3) organizations with fewer than 500 employees
- An individual who operates as a sole proprietor
- An individual who operates as an independent contractor
- An individual who is self-employed who regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501(c)(19) Veterans Organization that meets the SBA size standard
Paycheck Protection Program
The CARES Act includes the Paycheck Protection Program, a business loan program meant to offer relief to small businesses, primarily to keep employees on payroll and cover other critical expenses.
This program is for small businesses with fewer than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19.
- Coronavirus Emergency Loans Small Business Guide and Checklist from the U.S. Chamber of Commerce
- Eligibility and application guide from the Farris Bobango law firm
We recommend contacting your local lender about eligibility and applications, as the opportunity opened TODAY, Friday, April 3. Your local lenders may be at capacity when you reach out; be patient and keep trying to get through.
SBA Disaster Loan Program
The CARES Act also introduced an expansion of the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program. Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for a forgivable EIDL advance of up to $10,000, which provides small businesses with working capital loans up to $2 million that can provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
More information can be found on the SBA website.
We recommend applying for this resource.
The application requires only topline financial information and may provide your business with needed and forgivable capital. Many local organizations are offering assistance with the application process, including the TSBDC and the City of Memphis, at 901-636-9300 or BDCinfo@memphistn.gov. That being said, the SBA system and technical assistance providers may be at capacity when you reach out; be patient and keep trying to get through.
Get Expert Assistance!
Epicenter has a team of Experts-in-Residence — both generalists and subject-matter experts — who are available for 30-minute, one-on-one sessions to address any emergency/COVID-19-related needs you may have.
Help us connect you to the most appropriate resource for your business by filling out the form here.
We are also collaborating with a variety of economic development agencies and organizations to share information and resources that can benefit you in the short- and long-term. Below are links to some of those resources:
- Greater Memphis Chamber Business Resources Related to COVID-19
- State of Tennessee Department of Economic and Community Development Small Business Resources
Finally, don’t forget to take care of yourself.
Jackie Oselen hosts virtual Wellness Wednesdays every week. These coaching sessions will help you become more intentional about caring for your mental, emotional and physical health. Learn More and register.