THE CARES ACT AND PAYCHECK PROTECTION PROGRAM FOR SMALL BUSINESSES
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. These programs include the Paycheck Protection Program, Emergency Economic Injury Grant, Small Business Debt Relief Program and other resources.
The Paycheck Protection Program provides federally guaranteed loans to help small businesses (generally defined as those with fewer than 500 employees) maintain payroll and pay certain other expenses during the COVID-19 emergency. The loans offered through this program may be forgiven if the employer maintains their workforce and uses the loan for payroll or other expenses, including rent, mortgage payments, utilities, and group health insurance. Business owners will be able to apply for these loans at lending institutions, including many community banks, that are approved to participate in the program through the existing Small Business Administration (SBA) lending program. Additional guidance and details will soon be released through the SBA website.
Current information is available through the links below.