On Friday, March 27th, President Trump signed the COVID-19 stimulus bill, known as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This law provides significant support, resources, and $350 million in loans and grants to construction businesses. In this article, we’ll cover what contractors and suppliers need to know about the small business loan program, including who qualifies, and how to apply for an SBA loan.
SBA loans: Cash for construction during coronavirus
In response to the coronavirus pandemic, the CARES Act created a special loan program through the US Small Business Administration (SBA), known as the Paycheck Protection Program. This loan program is an expansion of the existing SBA 7(a) loan program.
The SBA Paycheck Protection Program provides $350 million in forgivable loans to eligible small businesses, including contractors and suppliers that qualify. If businesses use the money to pay their workers and meet certain other expenses, the loan will be forgiven.
As long as you keep workers on the payroll, and spend the loan money on the right things – and document everything! – the loan effectively becomes a grant.
However, Payroll Protection Loans are only one of several programs available to help construction businesses get cash right now. The SBA has other loans and debt relief available to help small businesses weather the coronavirus crisis. Cash flow is essential to construction businesses – now more than ever. If you are looking for cash to help get you through the downturn, don’t stop with SBA loans. Take advantage of every option available.
Get Cash With One Application
Apply for SBA loans and other financing options – all with a single application. Get the cash your construction business needs to make it through the COVID-19 crisis now.