CARES Act and Other Relief Funding
This page last updated on 4/24/2020 @ 5:15 p.m.
This page contains the latest information on the various funding sources available through the CARES Act, SBA Disaster Loans, and other federal provisions. It is very important to note that information is changing rapidly. The information on this page focuses on official publications and guidelines as they are published. (Please see disclaimer at the bottom of the page.)
First, become familiar with the SBA Disaster Loans, the CARES Act provisions, and other State & Federal Resources. Your CPA or financial advisor can help you navigate questions. You may also contact the City of Hoover Business Resource Hotline at 205-739-7162 to ask basic questions or be paired with a volunteer member of the Hoover CARES Business Advisors Coalition. Due to possible changes, the City of Hoover recommends reviewing official publications of the SBA and other federal agencies which are setting guidelines to administer these funds.
President Donald Trump Signed $484 Billion Coronavirus Relief Bill into Law Friday, April 24
The legislation includes additional funding for the Paycheck Protection Program and Small Business Administration disaster assistance loans and grants, among other things. Read a joint statement from the SBA Administrator and Treasury Secretary. Read the entire resolution here.
Federal Reserve Takes Additional Actions to Provide up to $2.3 trillion in Loans to Support the Economy
The Federal Reserve on Thursday, April 9, 2020 took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.
Important Note from Governor Kay Ivey, April 1, 2020 - What you need to do IMMEDIATELY:
Governor Ivey is STRONGLY encouraging small businesses to begin applying for relief funding as soon as possible. Governor Ivey, the State of Alabama, as well as the City of Hoover, implore you to begin gathering records and preparing paperwork that will be required for these loans IMMEDIATELY. DO NOT WAIT!
Also, identify banks that will be processing SBA loans. Funds are being loaned by banks and backed by the federal government; therefore banks must evaluate their participation in the programs. Not all banks will participate in the program, and some banks may give priority to their existing customers. We recommend starting with your current bank. You can also check with banks that are already approved to issue SBA loans. (Be advised that this list shows lenders headquartered in Alabama.) Inclusion on this list doesn’t guarantee participation in the CARES relief funding program; however, a financial institution must be approved by the SBA before they may issue these loans.
An Overview of the CARES Act
The official legislation for the CARES Act is about 900 pages. It can be found here.
A summary of the CARES Act will answer the most basic questions.
The PPP - A Major Component of the CARES Act
The Paycheck Protection Program (PPP) is one of the major components of the CARES Act. This provision allows for businesses to borrow up to $10 million (per business) to pay for things like payroll expenses, rent, utilities, and other business expenses. Additionally, up to 8 weeks of qualifying expenses is eligible for loan forgiveness when employers keep their employees on payroll. This legislation is designed to keep America working and help small businesses remain open. We encourage you to explore this loan and all of its benefits and limitations. A fact sheet can be found here.
All information, advice or content obtained from the City of Hoover is for informational purposes only and does not constitute legal, tax or accounting advice, but is designed to provide general information relating to business and commerce in light of the COVID-19 pandemic. The City does not recommend nor endorse any volunteer or its affiliated business. Any person seeking advice does so at their sole risk and discretion.
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