Early on March 25, 2020, the Administration and Senate Republican and Democrat leaders reached agreement on key terms of the proposed Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Senate passage is expected later today, followed later by anticipated passage by the House and then signature by the president.
The proposed legislation would inject approximately $2 trillion into the economy, providing tax rebates, expanded unemployment benefits, and a wide range of provisions aimed at shoring up individual, family, and business finances. Among the relief measures are several key proposals that would provide financial assistance to “small” businesses affected by interruptions or uncertainties caused by the COVID-19 pandemic.
This alert addresses expanded SBA Loans under a new program called “Paycheck Protection Loan Assistance.” Alerts that will come addressing other parts of law will cover business tax, unemployment benefits, health care, and employment-related changes.
Some of the more significant terms of this financial assistance program include:
Importantly, it will not be necessary to certify that applicant cannot obtain credit elsewhere.