THE WHAT? The Coronavirus Aid Relief and Economic Security Act (CARES) passed by congress is thought to help the natural products industry navigate through the economic unrest caused by the COVID-19 outbreak.
THE DETAILS Companies within the natural products and dietary supplement market will be able to access the Paycheck Protection Program, which will be administered by the Small Business Administration. Businesses of 500 employees or less will be able to apply for short-term loans of up to $10 million.
These loans must be used to cover wages, mortgage or rent costs, medical or sick leave, and utility costs. Companies with more than 500 employees will also be eligible for loan assistance.
Dr. Daniel Fabricant, President and CEO of the Natural Products Association, says, “This is much needed relief for thousands of small and large businesses who make up America’s natural products industry. They have demonstrated how critical they are to our country and our fellow citizens throughout this crisis, and this powerful combination of financial assistance and investment will help keep America strong.”
THE WHY? While industries across the globe suffer the financial consequences of enforced consumer lockdowns, many food and health operations can not only benefit from the CARES act, but have also been categorized as ‘essential’, allowing them to remain open during the self-isolation period.
Mark LeDoux, Chairman and Chief Executive Officer of Carlsbad, California-based Natural Alternatives International, told Natural Products Insider, “This is an extraordinary time – and it is gratifying to see that various governors have declared that producers of food and food supplements/dietary supplements are considered an essential component of the business community, and therefore remain open, with appropriate safeguards to personnel and product being implemented.”