This memo is designed to highlight some of the key components of the Paycheck Protection Program. In short, the Paycheck Protection Program temporarily permits the Small Business Administration (“SBA”) to guarantee 100% of small business loans to eligible borrowers and provides for forgiveness of up to the full principal amount of qualifying loans so guaranteed. The goal is to provide relief to America’s small businesses quickly in light of the devastating impact of the COVID-19 emergency, utilizing banks, credit unions and possibly other lenders to facilitate funding.
The Senate passed the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act’’ on March 25, 2020. The bill will now go back to the House and is expected to be signed by President Trump by Friday, March 27, 2020. The bill provides for direct cash payments for qualifying individuals. It also greatly expands the duration of, total amount of, and types of individuals qualified for unemployment. It also expands aid for small businesses. Below are some of the highlights of the CARES Act and how it may benefit your business.