(FinancialHealth.net) – On March 27, President Donald Trump signed the CARES Act into law. The $2.2 trillion stimulus package is meant to boost the economy amid the COVID-19 pandemic. Unfortunately, small business owners aren’t getting much relief.
When lawmakers wrote the law, they added a provision allowing businesses with 500 employees or fewer to apply for business loans and other money. Sole proprietors, contractors and others also qualify.
In total, the Paycheck Protection Program has $350 billion set aside for small companies. The emergency grants give each business an advance of up to $10,000 that owners don’t have to pay back.
#DidYouKnow small businesses impacted by #COVID19 can get a loan advance of up to $10,000? The loan advance does not need to be repaid.
▶️ Apply for an Economic Injury Disaster Loan & loan advance: https://t.co/fXIWUTFkRO
▶️ More loan resources: https://t.co/yG2N17KF63#CARESAct
— SBA (@SBAgov) April 6, 2020
According to the Senate website, business owners who apply for small business loans should receive relief within 3 days of applying. That’s not happening. Treasury Secretary Steve Mnuchin said businesses have applied for more than $1.8 billion in advances.
— Steven Mnuchin (@stevenmnuchin1) April 3, 2020
Many of these businesses haven’t received any relief. National Federation of Independent Business President, Brad Close, said some entrepreneurs feel “shut out.” On April 3, Reuters reported many big banks weren’t even accepting aid applications.
To top it all off, the Small Business Administration’s (SBA) website crashed on April 6 as business owners applied for stimulus relief. The only silver lining is an announcement by Senate Majority Leader Mitch McConnell (R-KY) saying he wants to pass more aid for small businesses by April 9.
One thing is for sure: The government needs to get its act together. Independent businesses across the country are suffering while the system fails them. It’s unacceptable.
~Here’s to Your Financial Health!
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