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.

Learn more about the details of the PPP Loan in our FAQ.

Facebook Small Business Grant Program

Amazon Small Business Relief Fund (Seattle)

Under the CARES Act, 7(a) Borrowers are relieved of any obligation to pay the principal, interest and any associated fees that are owed on a 7(a) loan in a regular servicing status (including Community Advantage loans) for a 6-month period beginning with the first payment due on a loan after March 27, 2020. 

• Existing borrowers

• NOT on deferment:  6 months of payments, principal, interest & associated fees beginning with the next payment on the loan
• ON deferment: 6 months of payments, principal, interest & associated fees beginning with the next payment on the loan after deferment period

• New borrower:  six months of payments of principal, interest, and any associated fees beginning with the first payment due on the loan, but ONLY for new loans made within the first six months starting from the date of enactment (3/27/2020) to 9/27/2020.

• SBA will pay this first loan payment to the Lenders within 30 days of the first loan payment due date after March 27, 2020.

• If a Lender receives a loan payment from a Borrower after March 27, 2020, the Lender must inform the Borrower that it has the option of the Lender either returning the loan payment to the Borrower or applying the loan payment to further reduce the loan balance after application of SBA’s payment

• NOT Deferment- you NEVER have to pay these monies back.
• Lenders are encouraged by SBA to provide deferments either before or after this payment relief.   You may end up with BOTH a payment deferment (this amount will be added to the end of the loan) AND debt relief of 6 months (that requires NO payback).
• ALL borrowers are assumed to be “adversely affected by COVID-19
• ALL borrowers deemed eligible for relief payments with loans under the eligible SBA programs
• NO ACTION required by Borrowers to apply
• PPP Loans will not receive this, but will have 6-12 months deferment and possible forgiveness