Coronavirus Aid, Relief, and Economic Security (CARES) Act for Small Businesses

Submitted by SJPL Works on Fri, 04/03/2020 - 2:30 PM

On March 27, 2020, the United States Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic relief package aimed at assisting workers and businesses impacted by the coronavirus pandemic. The CARES Act features emergency grants and a forgivable loan program for small businesses with 500 or fewer employees.There are also changes to rules for expenses and deductions meant to make it easier for companies to keep employees on the payroll and stay open in the near-term. Sole proprietors, independent contractors and other self-employed individuals are eligible for assistance through the CARES Act as well.

Paycheck Protection Program

The CARES Act establishes the Paycheck Protection Program (PPP), which is one of the most important provision in the new stimulus bill for small businesses as roughly $349 billion is dedicated to this new program. The PPP is designed to provide cash flow assistance with a 100% federally guaranteed loan directly to businesses who maintain their payroll during the COVID-19 emergency. The loans will be forgiven if employers maintain their payroll as it would not only help workers remain employed, but help affected small businesses and the economy to grow quicker after the crisis.

What are the main attractions of a PPP Loan?

The PPP is designed to support all business types with a payroll. The PPP has a number of attractive features:

  • Maximum loan of up to $10 million
  • Forgiveness of up to 8 weeks of payroll based on employee retention and salary levels. If some employees have already been laid off, the loan can still be forgiven for the full amount of payroll costs if those employees are rehired by June 30, 2020.
  • At least 6 months deferral of repayment and potentially up to a year.
  • No SBA fees.

What does the PPP Loan Cover?

The PPP loan is only limited to be used for:

  • Payroll cost
  • Costs related to continuation of group health care benefits
  • Employee salaries
  • Payment of interest on any mortgage obligation
  • Rent
  • Interest on any other debt obligations
  • Utility payment

When does it go live?

The PPP goes live Friday April 3, 2020 for small businesses and nonprofits. The PPP application will go live on Friday, April 10, for independent contractors and self-employed individuals.

Where can I apply for PPP?

Businesses can call their current bank or lender directly. The application can be accessed via the SBA’s website here. Businesses can apply if they were harmed by COVID-19 between February 15, 2020 and up to June 30, 2020. You will only be able to apply for a loan up to June 30, 2020.


Emergency Injury Disaster Loans (EIDL)

The CARES Acts has allocated $10 billion in the stimulus bill for the SBA’s Emergency Injury Disaster Loans (EIDL) and has expanded the eligibility for the EIDL.

What has changed with the EIDL?

  • Small loans under $200,000 can be approved without a personal guarantee
  • Loan up to $2 million
  • Businesses that have been in operations since January 31, 2020
  • Waived requirement that applicants are unable to obtain credit elsewhere

EIDL Advance

CARES Act allows for small businesses to apply for an EIDL advance of up to $10,000 which the SBA must distribute within 3 days. You must apply for an EIDL first and then request the advance. The advance does not need to be repaid under any circumstance.

Where to apply

This program is run directly from the Small Business Administration here. partners: SBDC, AnewAmerica, MBDA, and SCORE are available to help prepare loan paperwork.

What the advance can be used for?

  • Providing paid sick leave
  • Maintaining payroll to retain employees
  • Meeting increased costs to obtain unavailable materials
  • Rent/mortgage payments,
  • Any other obligations that can’t be met due to revenue losses


Can a business get an EIDL and PPP loan?

Yes, small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses. If an EIDL loan was obtained related to COVID-19 between January 31, 2020 and the date at which the Paycheck Protection Program becomes available, borrowers will be able to refinance the EIDL into the Paycheck Protection Program for loan forgiveness purposes.


*Please note that details are still being finalize and changes may occur. Please check the Small Business Administration for updates to the stimulus package.*

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Submitted by Delfa l Ochoa on Mon, 04/27/2020 - 5:56 PM


Your Comment
Yo vendo tamales x pedidos y tengo dos empleadas y con migo 3 puedo calificar para el estímulo de lis 1000 ??

Your Comment
Buen día, muchas gracias por escribirnos. Le recomendamos una teleconferencia en español que está organizando la Biblioteca para pequeñas empresas el día de mañana 29 de abril a las 5pm que se ofrecerá por Zoom. La teleconferencia se organiza en colaboración con la organización Small Business Majority. Aquí puede leer más sobre el evento gratuito:

Al igual, puede leer sobre varias organizaciones que están ofreciendo recursos e información para empresarios/as derivado del COVID-19 en la siguiente página: (puede cambiar el idioma en español si va hacia la esquina de arriba a la izquierda y cambia "Select Language" a español. Para ver un video de como cambiar el idioma, haga click aquí

Submitted by Martina r.morua on Sat, 05/16/2020 - 9:56 AM


Your Comment
Soy dueña única de una tienda de vestidos para 15 anos..recibí mi préstamo de ppp. Tengo una empleada y yo como empleadora me puedo pagar mi sueldo del préstamo?

Your Comment
Buenas tardes - dada la cuestión técnica sobre elementos de emprendimiento, le recomendamos que visite la página del Centro de Negocios Pequeños, aqui. Allí encontrará información actualizada para empresarios de pequeños negocios. Al igual, su página tiene información de centros locales que le podrán ayudar con asesoría individual, incluyendo los siguientes lugares:

SBDC Hispanic Satellite/Silicon Valley SBDC at Hispanic Chamber of Commerce
Centro de Negocios Pequeños

Sitio web (si se va la parte baja de su página, podra cambiar el idioma al español si presiona el ícono de la bandera de españa - amarilla con rojo)

1887 Monterey Road, 2nd Floor
San Jose, CA 95112

AnewAmerica Community Corporation
Centro de Negocios Para la Mujer
Sitio web
210 N. 4th Street, Suite 205
San Jose, CA 95112
(408) 326-2669
Otra fuente de información es esta página de recursos desarrollado por la Universidad de Santa Clara:

Submitted by Juan loprz on Thu, 06/04/2020 - 5:01 PM


Your Comment
Trabajo en un restaurante como bosboy. El jefe quiere pagarme asi no este trabajando. Con la promesa de que yo le devuelva esos pago el ano que inicie a operar su negocio.
Es correcto lo que el esta haciendo?

Submitted by Anonymous on Tue, 06/09/2020 - 9:50 AM

In reply to by Juan loprz


Your Comment
Si su empleador le está pagando actualmente, le impactará en su habilidad de poder recolectar todos/algunos de los beneficios de desempleo. Particularmente con los $600 adicionales que se están otorgando a todos, es probable que le convenga más aplicar para desempleo.

Aquí la liga para más información para aplicar y recibir beneficios de desempleo:

Aquí una liga para reportar posible fraude: (para leer la version en español, en la cabezera de la página, al lado de donde dice "SBA en español," haga click en la palabra "translate" y elija "Spanish." Automaticamente se le convertirá la información al español.

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