Posted By Lorana Price On April 8, 2020
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.