Governor Tate Reeves provided an update from the legislature this afternoon regarding the first round of the CARES Act assistance for small businesses.
Reeves went on to say that it is unfair that the nationwide crisis and the cost of it is being carried by those small businesses and their employees. $300 million has been set aside from the coronavirus relief fund to create two programs providing a direct payment to some businesses and a grant to others.
He says the small businesses can still get additional money with what’s being called ‘the back to business fund’ that will allow businesses to get up to $25,000 to reimburse the cost that’s been incurred and the damages that have been done during this time.
You must have less than 50 employees. “For the first 21 days of the program it’s reserved for businesses that did not get Paycheck Protection Program funds through the federal government. We have to fill in the gaps. It also protects a certain amount of the funds for minority owned businesses at the front end, because we know that community has been hardest hit by the virus. We’ll get a final review of the final bill done in the coming days before we sign it and then get to work on the application you have to fill out, then we’ll get the funds out as quickly as possible now that the legislature has debated it and voted on it is the first part of the CARES Act funding.”
The legislation provides $60 million to the direct payment program and $240 million to grants.
For the first 60 days, $40 million from the grant program will be set aside for minority-owned businesses.