Updated Guidance on Securing CARES Act Stimulus Funding for Small Businesses

To reflect additional guidance released by the Small Business Administration, this report updates our previous guidance for small businesses seeking to secure CARES Act stimulus funding.

As part of an overall package expected to cost more than US$2 trillion, the CARES Act provides more than US$360 billion in immediate loan assistance for small businesses, including (a) an expanded Economic Injury Disaster Loan (EIDL) program and (b) the Paycheck Protection Program (PPP), administered under the Small Business Administration’s (SBA’s) 7(a) program. While the PPP will provide small business owners with forgivable, low-interest, no-collateral loans to provide the liquidity that businesses need to support employees during the impacts related to the coronavirus disease 2019 (COVID-19) pandemic, the EIDL program will help small businesses recover for broader economic injury related to the outbreak. This is our updated guidance for small businesses seeking to secure stimulus funding to stay afloat during this unprecedented pandemic.