Economic Relief for Small, Midsize and Large Businesses through the CARES Act
On March 27, 2020 Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The CARES Act provides immediate relief to businesses suffering from the economic impacts associated with the COVID-19 pandemic. As summarized below, Title I provides aid to small businesses and other small entities and Title IV provides a more broadly applicable emergency relief fund that should result in loans for medium and large businesses impacted by COVID-19.
SBA Paycheck Protection Program to Provide Loans and a Loan Forgiveness Program to Eligible Entities Impacted by COVID-19
The CARES Act amends Section 7(a) of the Small Business Act to create the Paycheck Protection Program (PPP). Under this expansion of the SBA’s traditional loan program, the government will provide or 100% guarantee loans made to eligible persons or entities over the next several months in an effort to help small businesses impacted by COVID-19. The CARES Act also creates a loan forgiveness program for certain payments made with the PPP loans. For answers to some of the preliminary questions a potential borrower might be asking as they consider applying for a loan under the PPP, click the button below.
The CARES Act Makes Available Economic Relief for Midsize and Large Businesses Impacted by COVID-19
Under Title IV of the CARES Act, the Treasury Secretary is broadly authorized to make up to $500 billion in loans, loan guarantees, and other investments in support of “eligible businesses.” An “eligible business” is “a United States business that has not otherwise received adequate economic relief” under other provisions of the CARES Act. To learn if your organization is eligible and learn more about the program, click the button below.Learn More About Economic Relief Efforts for Midsize & Large Businesses