Small Businesses Get A Lifeline: Federal Government Approves Relief Package that includes $377 Billion for Small Businesses to apply for loans and grants up to $10 million with no collateral and loan forgiveness. By retaining employees, companies can apply to receive up to two and a half months of payroll, rent and other costs through the federal relief package.
Washington D.C. – Washington is responding to the needs of small businesses, which account for more than 30 million jobs in the United States — almost half the total private workforce. Today, the U.S. House of Representatives and U.S. Senate passed a $2 Trillion relief package called the Coronavirus Aid, Relief, and Economic Security (CARES) Act which includes an estimated $377 billion earmarked for small businesses.
Hispanic, minority-owned, and small businesses can now apply for loans of up to $10 million per company, depending on their monthly payroll. The entire amount of the loan can be forgiven if owners can prove that they maintained their workforce without layoffs during this coronavirus crisis.
“The United States Hispanic Chamber of Commerce (USHCC) applauds our Board of Directors for their leadership and advocacy on this much-needed bipartisan relief package,” said Ramiro A. Cavazos, USHCC President & CEO. “America’s small business owners are the backbone of our economy and they are drowning right now.”
“We are proud to advocate on behalf of our small businesses, Hispanic chambers of commerce, and key members to support this legislation from the beginning of this crisis. We want to thank our leaders in the U.S. House of Representatives, the U.S. Senate, and the Federal Administration for their swift action to provide emergency economic relief for our small business owners to address their immediate cash flow concerns,” Cavazos added.
“We look forward to continuing to work together on any future legislation with our colleagues in Congress including the Senate Committee on Small Business and Entrepreneurship chaired by Senator Marco Rubio (R-FL), and the House Committee on Small Business chaired by Congresswoman Nydia Velázquez (D-NY) to make sure that our Hispanic and minority-owned small businesses and Hispanic Chambers of Commerce have access to the emergency resources they need to respond to the economic effects of the coronavirus epidemic and continue to revitalize and fuel America’s economy,” added Cavazos.
To apply for relief, business owners do not have to demonstrate hardship as with previous traditional government disaster loans, nor do they have to provide collateral or a personal guarantee, because the government will fully back the credit. Every U.S. State and U.S. Territory is now approved as a disaster-area by the SBA standards so business owners in every state can apply at: www.disasterloan.sba.gov. Most businesses can also qualify for a 7(a) small business loan and can begin the process by contacting your bank or lender and asking about applying for a 7(a) small business loan.
To qualify, a business owner must make “a good faith certification that the loan is necessary due to the uncertainty of current economic conditions,” according to a summary of the bill.
Separately, businesses are also eligible for a cash advance emergency grant of $10,000 within three days of applying for aid.
Small companies, generally defined as having up to 500 employees, can start applying immediately, though funds may not be available for approximately 15 days.
For many business owners, this is a chance to boost cash flow immediately, keep people employed and build financial breathing-room for entrepreneurs trying to remain afloat.
“Our Latina and Latino entrepreneurs are strong, resilient and perseverant business leaders,” said Carmen Castillo, Chairwoman of the USHCC Board of Directors and President & CEO of SDI International. “The United States Hispanic Chamber of Commerce will continue to advocate on behalf of our members to make sure our community continues to start and grow their businesses faster than any other demographic, while providing training and technical assistance for our small business members to access needed resources as we navigate these unprecedented times together.”
The USHCC has also created a Technical Assistance Resource Guide for Hispanic minority-owned small businesses trying to navigate this crisis in collaboration with our valued corporate members and the SBA
About the USHCC
As the leading advocacy organization for the U.S. Hispanic business community, the USHCC promotes the economic growth, development and interests of more than 4.37 million Hispanic-owned businesses that annually contribute over $700 billion to the American. The USHCC also has the support of over 200 American corporations and also serves as the umbrella organization for more than 260 local chambers and business associations nationwide.