Who Is Eligible For Small Business Loans In The Economic Stimulus Package?

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The law provides clear guidelines on what small businesses are eligible, and what their loans will look like.

Any business with less than 500 employees is eligible for the loan. All states and territories are eligible. Self-employed individuals, independent contractors, and sole proprietors are also eligible.

More than 1,000 lending agencies will be participating in the program, according to a spokesperson for Senator Marco Rubio.The loan is forgivable, meaning it doesn’t have to be paid back, during what is called a “covered period.” This period is eight weeks, chosen by the small business owner and the lending agency, between February 15, 2020 and June 30, 2020.

All operating costs, including employee payroll , employee health care, interest on mortgage, rent, utilities, and debt payments are included. The quarterly payroll cost for an employee cannot be more than $33,333 . If the crisis continues longer than expected, the law can be amended and the time period extended, according to a spokesperson for Senator Marco Rubio. The eight-week period was determined in discussions with business industry leaders.

 

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