Posted By Lorana Price On April 8, 2020
Eligibility Requirements for CARES Act Stimulus Funding
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