LA CARES Corps is a partnership between the City and County of LA to provide small businesses with the help they need to apply for federal loans under the CARES Act.
What is the CARES Act?
The new Coronavirus Aid, Relief, and Economic Security (CARES) Act provides $349 billion in Small Business Administration (SBA) loans. These loans are meant to provide emergency assistance to businesses affected by the coronavirus (COVID-19) pandemic. In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak, including the Economic Injury Disaster Loans (EIDL), Emergency Economic Injury Grants, and the Paycheck Protection Program (PPP).
Economic Injury Disaster Loans (EIDL)
A low-interest loan with an optional $10k advance
EIDLs are loans of up to $2 million with a 3.75% interest rate for businesses and a 2.75% interest rate for nonprofits with terms of up to 30 years. This loan offers an optional $10,000 advance as a non-repayable grant within days of a successful application.
Paycheck Protection Program (PPP)
A loan program that provides loan forgiveness for retaining employees
The PPP is a 100% federally guaranteed loan to help small businesses keep workers on payroll for a period of 8 weeks during this crisis. The loans can be up to $10 million with a 1.0% interest rate with a term of two years. It will be fully forgiven if at least 60% of the entire loan is allocated towards payroll, funds are used for eligible uses, and employment and compensation levels are maintained. Borrowers are required to expend the entirety of their PPP loans in 24 weeks or by December 21, 2020, whichever comes first.
For more details, please visit: https://ewddlacity.com/index.php/lacarescorps