Energy Management

CARES Act: Using Your Small Business Loan for Utility Expenses

2 min read

Small businesses are struggling as restrictions are put in place to prevent the spread of the coronavirus (COVID-19). The U.S. Congress has responded by passing emergency assistance legislation, including the Coronavirus Aid, Relief and Economic Security (CARES) Act, which opens up the availability of government small business loans (i.e., SBA disaster loans) to help keep businesses open and workers employed.

An SBA disaster loan is a low-interest loan offered by the U.S. Small Business Administration to help businesses and individuals recover from officially declared disasters. Historically, disasters have been declared for catastrophic events like hurricanes, earthquakes and floods, and are limited to a state or territory. Presently, small business owners in all U.S. states and territories qualify for SBA relief programs related to the coronavirus pandemic.

Here’s a summary of what you need to know:

What Can it Cover?

Helps cover utility expenses, for which service began before February 15, 2020

Who is Eligible?

Most businesses with 500 or fewer employees; some with 500-plus employees

When Does it Start?

Starting April 3, 2020, for small businesses/sole proprietorships

Where Can I Get a Loan?

Your local approved SBA lender or federally insured depository institution

How Can I Apply?

Complete the loan application and submit to approved lender by August 8, 2020.

Do you have further questions on how the CARES Act funds can help you pay your utility bills, in addition to payroll and other expenses? As your energy provider, Constellation is closely monitoring developments related to the coronavirus (COVID-19) pandemic to help make it easier for you to find information.

Visit our helpful resources page where customers can find answers to questions and links to materials at To the extent that our FAQs page raises more questions for you, we encourage you to reach out and work with your legal and financial advisors.

We wish you health and safety, especially during these uncertain times.

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