Below are a few updates regarding the “Coronavirus Aid, Relief, & Economic Security”(CARES) Act
Key Components of the Act pertaining to funding & financing of businesses include:
- UPDATED: Debt Relief for SBA borrowers. On Friday, Congress passed & Trump signed the CARES Act which has numerous provisions for helping businesses through this challenging time. One of the provisions in the Act is payments for SBA 504 loans will be paid for you by SBA for 6 months. This is not a deferment, but rather debt relief (loan forgiveness) that will not be required to be paid back down the road and will not create a taxable event for the forgiveness. This will begin with your April 1 payment – so your payment will not be pulled for 6 months starting April 1. Regular payments will resume on October 1. You do not need to take any action, this is an automatic action for all SBA 504 and 7a loans.
- UPDATED: Paycheck Protection Program (PPP). This will be an SBA 7a loan available through local lenders (banks, credit unions, etc.) for up to $10 million to cover working capital needs during this crisis. A portion of the loan that covers 8 weeks of payroll and other costs will be forgivable. Loans are available starting April 3. For more information, click here.
- NO CHANGE: Emergency Economic Injury Grants as part of the SBA Economic Injury Disaster Loan Program (EIDL). Will provide a $10,000 advance to small businesses who apply for the EIDL within 3 days. Additional details about the EIDL program are available here.
Again, this is all the information that we have at this time. We will continue to share additional information as the bill gets interpreted into policy & procedure over the next several days.
MORE INFORMATION ON THE CARES ACT AND STATE-SPECIFIC RESOURCES
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