Assistance for Small Businesses, Independent Contractors, and Self-Employed Individuals
Dear Valley Resident,
On March 27, the CARES Act was passed by the U.S. House of Representatives and signed into law, providing roughly $2 trillion in federal funding in response to the coronavirus (COVID-19) crisis.
A significant portion of that funding takes the form of financial assistance for small businesses, primarily those with 500 or fewer employees, as well as independent contractors and individuals who are self-employed. If you own or operate a small business, are an independent contractor, or are self-employed, you may be eligible to receive financial assistance through one or more Small Business Administration (SBA) programs.
To learn more about all of the available assistance programs and whether you might be eligible, you can visit the SBA's coronavirus resource webpage.
Paycheck Protection Program:
Of particular note, the CARES Act provides an additional $349 billion for small businesses, independent contractors and self-employed individuals to receive loans which will be eligible for 100 percent forgiveness (basically turning the loan into a grant) if certain basic requirements are met. The key requirement is that the business keep its employees on the payroll.
These loans will be provided under the SBA's Paycheck Protection Program. To learn more you can visit the SBA's Paycheck Protection Program webpage.
Under this program, loan applications will be processed, and loans will be made by banks, credit unions and other private lenders. If you have any interest in receiving financial assistance under this program, you should consult with your local lender as to whether it is participating in the program. Lenders may begin processing loan applications as soon as April 3, 2020.
Any SBA approved lender should be prepared to answer questions regarding the Paycheck Protection Program. However, you can also contact the SBA's local Los Angeles District Office with questions on this or other programs by calling (213) 634-3855, by emailing LADO@sba.gov, or by visiting the website.
Sincerely,
Congressman Brad Sherman