02 Apr FAQ’s On SBA Loans in Coronavirus Relief CARES Act
Frequently Asked Questions On Small Business Loans In Coronavirus Relief CARES Act – Published April 1st 2020 in Forbes by Brian Thompson
Less than a week has passed since the CARES Act became law, and business owners have already begun wrestling with the implications. One of my clients emailed me yesterday, “Is it just me, or is suddenly a lot happening?” Yes, a lot is happening! All of us, especially business owners, are trying to keep up with all of the moving parts.
When I recently wrote about the enhanced and new loan options available through the CARES Act, I got a lot of questions about the details. As one of my law school professors used to say, “if you have a question, it’s likely someone else does too.” So to help answer the most common queries, I’ve gathered some additional information about these loans.
The SBA provided some additional clarity on March 31st on the Payment Protection Program, which I’ve included in this piece. But there are still many elements of the small business stimulus package that we don’t understand fully yet. In these cases, I’ve made my best guess given my experience as a lawyer and advisor, along with other expert commentary. Keep in mind, this is my interpretation, not the government’s or your lender’s. And while I am a lawyer, I’m not your lawyer. This overview does not constitute legal advice or a legal relationship. We’re all trying to figure this thing out together.
On to the questions!
Can I get these loans and unemployment?
This was the most commonly asked question. The CARES Act not only provides relief for small business owners through loans but also allows the self-employed, independent contractors and part-time workers to collect unemployment benefits.
Are you curious about how sellable your company is and what you would need to tweak to sell it when you’re ready? Then it’s time to get your Value Builder Score via the questionnaire on our website. It takes about thirteen minutes and your responses are kept confidential.