LOUDOUN COUNTY, Va. (WDVM) — Congress has passed the Coronavirus Aid, Relief, and Economic Security law, also known as the CARES Act in order to help people and businesses stay afloat during this pandemic.
“I want to let you know that we recognize fully in Congress that the coronavirus pandemic is something that is of unprecedented size, scope and speed in which it has really devasted our local and national economy,” said Congresswoman Jennifer Wexton.
Wexton held a public webinar to discuss how this federal act will help Loudon County businesses. Under the CARES Act, the paycheck protection program — also known as the P3 program — is designed to help keep small business employees on the payroll.
“Those are loans of up to $10 million now they will cover up to eight weeks of average payroll and other costs which is payroll plus 25%,” said Wexton.
Loan payments will be deferred for six months and there are no fees. Businesses can also apply for emergency grants that can be made available within three days of applying.
“The amount of the loan that you can borrow the goal is to get eight weeks of payroll covered, how that’s calculated is a little bit more than just your payroll for other expenses so when the forgiveness part is calculated which we will do later that amount has to make sure that there is a balance of 75%, 25% and anything that isn’t forgiven is going to turn into a loan,” said SBDC Manager Eric Byrd.
During the webinar, Wexton also announced that for the first time sole proprietors, independent contractors, and other self-employed individuals are eligible for SBDC loans.
“Helping small businesses is very important to me because Virginia 10, my district has more small business than any other congressional district in VA so this is something near and dear to my heart and I hope the provisions for the care act and beyond will help you guys be able to resume your operations when we get to the end of this crisis,” said Wexton.
According to Wexton, lawmakers are already working on phase 4 of the relief legislation.