CARES Act Includes Provisions Supporting Organizations Assisting Entrepreneurs and Small Businesses
Daniel T. Fahey | 04.17.20
Included in the wide-ranging CARES Act are provisions giving financial support to organizations that assist entrepreneurs and small businesses.
Section 1103 of the CARES Act provides grants to Small Business Development Centers and Women’s Business Centers (as those terms are defined in the CARES Act) to help small businesses navigate the COVID-19 pandemic. These grants would be used to provide small businesses with education, training and advising on obtaining federal financial resources, preventing the spread of COVID-19 and other diseases, mitigating negative effects of COVID-19 on business activity, and conducting business activity remotely.
The Act authorizes these grants to total up to $265,000,000. Small Business Development Centers would be eligible to receive 80% and Women’s Business Centers receiving 20% of the total funds authorized.
Also eligible for grants are associations representing Small Business Development Centers or Women’s Business Centers. Grants to these associations must be used to establish a single centralized hub for COVID-19 information, which would include (1) consolidation of federal resources available relating to COVID-19 for small businesses, and (2) a training program on these resources for counselors of Small Business Development Centers, Women’s Business Centers, and veterans business outreach centers, along with members of the Service Corps of Retired Executives.
Goals and metrics for the funds made available under this subsection will be jointly developed, negotiated, and agreed upon, between the recipient of the grant and the Small Business Administration (SBA).
If you have questions about how the CARES Act may help your business, please contact the author or one of our Business Practice Group attorneys.
DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.