Posted By Lorana Price On April 8, 2020

Eligibility Requirements for CARES Act Stimulus Funding

CARES Act Stimulus Funding Eligibility

By now you’ve likely heard about the Federal coronavirus stimulus package to help businesses manage during the COVID-19 outbreak. Many behavioral health agencies are wondering if they are eligible for funding. 

CARES Act Stimulus Funding Eligibility

You are eligible if you are:

  • A small business with fewer than 500 employees
  • A 501(c)(3) with fewer than 500 employees
  • A Tribal business concern that meets the SBA size standard

REMEMBER: The 500-employee threshold includes all employees: full-time, part-time and any other status.

What Lenders Look For

Lenders will ask for a good faith certification that:

  • The current economic uncertainty makes the loan necessary to support your agency’s operations
  • You will use the loan to retain employees, maintain payroll or make mortgage, lease and utility payments
  • You haven’t received a loan from Feb 15 – Dec 31, 2020 that duplicates the purpose and amounts applied for 

Loans can be up to 2.5 times your average monthly payroll costs (not to exceed $10 million). Additionally, borrowers are eligible for loan forgiveness equal to the amount spent on payroll, mortgage interest, rent and utility payments.

Click here for the US Chamber of Commerce Small Business Guide and Checklist.

CARES Act Resources

The Coronavirus Aid, Recovery and Economic Security (CARES) Act

The CARES Act Section by Section Summary

Small Business Administration Disaster Assistance

Corona Virus Emergency Loans Small Business Guide and Checklist

About Lorana Price

Lorana Price is a Marketing Executive at Patagonia Health. Her background includes work with regulated document management software, home healthcare software and global medical device commercialization. She applies her skills at Patagonia Health by developing content related to important Public and Behavioral Health news and updates.