updated August 2021
What is the CARES Act?
In response to the Coronavirus (COVID-19) pandemic, the U.S. Small Business Administration currently provides financial assistance to small businesses through the Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP).
Economic Injury Disaster Loans (EIDL)
A low-interest long-term loan
EIDLs are loans of up to $2 million with a 3.75% interest rate for businesses and a 2.75% interest rate for nonprofits with terms of up to 30 years.
Paycheck Protection Program (PPP)
A loan program that provides loan forgiveness for retaining employees
The PPP is a 100% federally guaranteed loan to help small businesses keep workers on payroll for a period of 8 to 24 weeks during this crisis. The loans can be up to $2 million with a 1.0% interest rate with a term of five years. It will be fully forgiven if at least 60% of the entire loan is allocated towards payroll, remaining funds are used for eligible uses, and employment and compensation levels are maintained.
Need Help Applying for SBA Loans?
Contact the LA County Business and Worker Disaster Help Center
For assistance applying for a City or State loan, please contact a BusinessSource Center for phone and email support.
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