Coronavirus Aid, Relief, and Economic (CARES) Act
President Trump has signed into law the CARES Act, providing relief for small businesses during this economic downturn.
You are eligible if you are:
- A small business of 500 employees or less.
- A small business that otherwise meets the SBA’s size standard.
- A 501(c)(3) 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.
What are lenders looking for?
Lenders will be looking to see if you were in operation before February 15, 2020, and had employees that you paid salaries and payroll taxes or paid independent contractors.
How much can you borrow?
Loans can be up to 2.5 times the borrower’s average monthly payroll costs, not exceeding $10 million.
Can this loan be forgiven?
Yes! Eligibility for loan forgiveness is equal to the amount the borrower spent on the following items during the eight-week period beginning on the date of the origination of the loan.
- Payroll costs.
- Interest on the mortgage obligation incurred in the ordinary course of business.
- Rent on a leasing agreement.
- Payments on utilities.
- For borrowers with tipped employees, additional wages paid to those employees.
For more details on the CARES Act, click here.
Auburn’s Interest Subsidy Program
The city of Auburn’s Interest Subsidy Program was created to assist small businesses during this health crisis by providing an interest subsidy to approved applicants.
Who is eligible?
Businesses located with the corporate limits of the city of Auburn. The borrower must certify that this loan is necessary to remain in business with the city of Auburn.
The loan from the financial institution must be for working capital expenditures defined by the lender. The term of the loan is one to three years, with the rate negotiated by the lender (up to 4%). The maximum loan amount eligible for this program is $25,000.
Applications should be submitted to the city of Auburn by participating lenders. The city will then follow the Amendment 772 approval process.
For more details and to see a list of financial institutions participating, click here. An Interest Subsidy Program FAQ page can be found here.