The Coronavirus Aid, Relefic, Economic Security Act (CARES) signed into law by the current President contains notable relief for small businesses affected by the national emergency declaration of COVID-19. The most important items of relief for small businesses in the CARES act is the nearly $350 billion in small business administration (SBA) loan guarantees, subsidies, and loan programs, geared at keeping small businesses afloat and assist them in sustaining their workforces.
Status
Paycheck Protection Program
Economic Injury Disaster Loan
Eligibility
Businesses that were operational as of February 15, 2020, and have less than 500 employees or businesses with multiple locations, but less than 500 employees in one single location.
Businesses located in a disaster declared or a contiguous county.
Loan Limit
Loans can be up to 2.5 times average monthly payroll costs, not to exceed $10 Million.
Up to $2 million
Serviced By Payback Terms
Your banking provider. No payments for the first 6 months and a total 2-year term.
Only by the Small Business Administration Up to 30 years
Rates
Fixed 0.5% APR
3.75% APR
Loan Forgiveness
Up to 100%, if approved1
Not applicable
Section 1101 of the CARES Act creates a new loan program under Section 7(a) of the Small Business Act. Eligible borrowers can receive a PPP loan of up to $10 million to fund payroll costs, mortgage payments, rent payments, and utility payments. Banks will have an important role to play In order to administer the CARES Act Paycheck Protection Loan Program properly.
