What Businesses are Eligible for the Small Business Loan Stimulus?

Lenders are moving quickly to make funds available to small businesses across the U.S. in the wake of the coronavirus pandemic. Is your business eligible? 

The coronavirus stimulus package, now called the CARES Act, includes $350 billion for a small business loan program called the Paycheck Protection Program. The effort should incentivize business owners to keep employees on the payroll. 

Who qualifies? Small businesses, nonprofits, and tribal businesses that meet the SBA’s standard size definition, meaning fewer than 500 employees according to The Washington Post. This also includes veterans organizations organized under 501(c)(19). In addition, self-employed workers, independent contractors and sole-proprietors can apply. The company must have been in business as of Feb. 15.

Food service companies can have up to 500 employees per location and still be eligible for the program. 

Borrowers must also certify that their company has been affected by the coronavirus slowdown, per Fortune. While credit scores will be evaluated, lenders will not need collateral or a personal guarantee.