Last week, the U.S. Senate and House approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act bill, which the President subsequently signed into law.

U.S. Small Business Administration’s Loan Program – Paycheck Protection Program & EIDL Loans

The key source of relief for small businesses contained in the CARES Act will be the introduction of the Paycheck Protection Program and modifications to the existing EIDL Loan Program (disaster loans), each of which will be administered by the U.S. Small Business Administration. These changes include:

  • “Paycheck Protection Program” (a modified version of traditional 7(a) loans). The CARES Act appropriates $349 billion of new funding for these loans, which will be made available to eligible companies to incentivize them, through forgiveness of the loan, to retain employees and assist them in covering their near-term operating expenses. To view a detailed summary of the Paycheck Protection Program, visit: caresact_paycheckprotection
  • EIDL Loan Program (also known as “disaster loans”). The CARES Act appropriates $10 billion of new funding for these loans. These loans can provide immediate relief to eligible businesses at low interest rates. To view a comparison of the EIDL Loan Program and the Paycheck Protection Program, visit: caresact_loans

We Can Help You

We have been on the forefront of dealing with COVID-19 for our clients. Please contact us if you would like to discuss any of these issues or if we can otherwise be of assistance.

COVID-19 Resources

We recommend you evaluate the following pandemic-related business and legal considerations that we have been discussing with our clients:

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