Coronavirus Aid, Relief, and Economic Security Act
As you may have heard, the US Senate unanimously passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) there are many benefits of the CARES Act. Of particular interest to small business outlining expansion of the SBA loan program. The law allows the SBA to provide grants and 100% federally-backed loans to help qualified small businesses pay operational costs, such as payroll, rent/mortgage, utilities and health insurance premiums.
Any loans, or any portion thereof, that are used for certain purposes (i.e., covering payroll obligations) may be forgiven, but forgiveness amounts will be reduced for employee terminations or wage reductions. Eligible businesses may access the program through private banking institutions already authorized to make SBA loans. As the pool of funds are limited, it is critical for qualified small businesses to act quickly once the program goes into effect. More details on the expanded SBA loan program can be found by clicking on the document below.