Serving proudly since 1873 as the beautiful Nebraska Panhandle's first newspaper
Serving proudly since 1873 as the beautiful Nebraska Panhandle's first newspaper
In late March, soon after responses to the coronavirus included restricting social interaction and business availability, the federal government passed the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The $2 trillion-plus package is designed to provide economic relief for people impacted by the COVID-19 restrictions.
The CARES Act was designed to provide assistance for American workers and their families, assistance for small businesses, assistance for state, local and tribal governments and preserving jobs for American industry.
One of the most noted parts of the CARES Act is the Paycheck Protection Plan (PPP). The PPP provides funds for small businesses to keep staff employed rather than adding to the unemployment program.
A portion of the PPP could be used for mortgage or rent and utilities.
According to the Small Business Administration, at least 60 percent of the forgiven amount must have been used for payroll. Loans issued prior to June 5 have a maturity of two years, and loans issued after June 5 have a maturity of five years. All loans have an interest rate of 1 percent.
Some of the deadlines have recently passed or are nearing.
Sara Bennett of the Nebraska Business Development Center at the University of Nebraska Kearney, encourages small business owners to contact the Small Business Administration (SBA) Nebraska District Office or Nebraska Business Development Center with questions. NDBC is a Small Business Development Center program funded by SBA to help small businesses.
“Businesses have to apply for forgiveness. It's not automatic,” she said.
She added that employers have to rehire employees at their pre-COVID-19 rates, and the same number of employees. Otherwise, the amount of available funding may be reduced. Loan amounts are based on 2 ½ months of payroll data from 2019.
The Economic Injury Disaster Loan (EIDL) program is available for small businesses and agricultural entities. There was speculation that the program would be extended.
However, the program was not extended, Bennett said. The deadline for the EIDL program is Dec. 31, 2020. The PPP program ended June 26. The State of Nebraska Small Business Stabilization Grants for livestock producers is open through today, July 1.
As of June 20, 41,361 Nebraska businesses received a loan through the Paycheck Protection Program in the CARES Act.
The next step in the program, CARES Act Relief Funding Phase 2, is for small and medium-sized arts organizations through a grant from the National Endowment for the Arts.
This funding comes through the CARES Act, a federal program through the National Endowment for the Arts that supports the non-profit arts community in Nebraska as it attempts to recover from the financial challenges created by the COVID-19 health crisis.
Humanities Nebraska has awarded $429,000 to 73 Nebraska non-profit organizations focused on the humanities as of June 22.
Reader Comments(0)