Sullivan recently issued a client alert highlighting key provisions of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") as well as a follow-up client alert providing a deeper dive into the Paycheck Protection Program ("PPP") under the CARES Act.
With banks now accepting loan applications under the CARES Act, there has, understandably, been significant attention given to the PPP loans. However, small businesses negatively impacted by the COVID-19 pandemic should also consider other sources of economic relief. For instance, small businesses registered and operating in Boston should consider applying for the City of Boston’s Small Business Financial Relief Fund, which will be administered by the Mayor’s Office of Economic Development ("OED"). Qualified small businesses must be for-profit entities with fewer than 35 employees and less than $1.5 million in annual revenue; chain and corporate franchises are ineligible. Applicants will be considered for one of three grants, which range from $2,500 to $10,000, depending primarily on the number of employees and annual revenue of a business. Grants can be used for a variety of business expenses, including rent, payroll and working capital expenses.
OED will begin accepting applications on Monday, April 6, 2020 (the "Application Date"). Due to anticipated high demand, grants will be limited and applications will be reviewed on a rolling basis. Therefore, we advise eligible small businesses to submit their application as soon as possible on or after the Application Date.
The application and additional information regarding the Small Business Financial Relief Fund can be found here. OED’s "Financial Relief Handbook," a resource guide for small businesses attempting to navigate the available financial relief resources, can be found here.