Memo: CARES Act Funding Assistance
April 7, 2020
CARES Act: COVID-19 Funding Assistance Measures
The COVID-19 pandemic continues to disrupt daily life and business operations, creating additional urgent demand for reliable broadband networks while causing financial hardships for many. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law in an effort to help meet the unique challenges presented by the COVID-19 pandemic. Part of the Act appropriates funds to promote rural broadband development and telehealth services.
As a part of the CARES Act, small businesses affected by economic difficulties resulting from COVID-19 may receive help through the Paycheck Protection Loan Program (“PPP”) under the Small Business Administration’s existing Section 7(a) loan framework. Eligible borrowers may be eligible for loans up to the lesser of either: $10 million or 2.5 times the average monthly payroll costs during the year prior to the loan date. Payments of the loan would be deferred for six months to a year, with interest rates at 4% or lower. Funds can be used for payroll support, mortgage/rent or utility costs, and other debts incurred by the business. Borrowers may also be eligible for loan forgiveness equal to the amount spent during an eight-week period after the loan origination date.
Download the full memo for additional detail on Paycheck Protection Loan Program, ReConnect Funding, Telehealth Program, and Connected Care Pilot Program.
If you have any questions about additional funding opportunities or how the recent COVID-19 legislation may help provide relief to your business operations, please contact these members of the Vantage Point team:
Jill Weber at (605) 995-1832
Mikaela Burma at (605) 995-1742
Wendy Harper at (605) 995-1756