Paycheck Protection Program - SBA Loan Program Expanded in CARES Act
On March 27, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law, providing an unprecedented level of emergency assistance for individuals, families, and businesses affected by the coronavirus epidemic.
The legislation includes a new loan program – the Paycheck Protection Program administered through the SBA – that provides up to $349 billion in loans to eligible entities, with such loans being subject to forgiveness under certain circumstances. The 100 percent federally-guaranteed loans are available under a new subsection 36 of Section 7(a) of the Small Business Act.
The loans may be used for a variety of purposes, including payroll costs, rent, utilities, mortgage interest (not principal) existing prior to February 15, 2020.