The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law by President Trump on March 27, 2020. Division A of the Act expands the Small Business Administration Interruption Loan and rolls out a “Paycheck Protection Program.” This is a nearly $350 billion dollar program that offers cash flow assistance to businesses to fund payroll and cover mortgage/rent/utility expenses through government backed loans that can be fully or partially forgiven if certain conditions are met.
Businesses, sole proprietorships, certain self-employed individuals and even private and public nonprofit organizations with fewer than 500 employees are eligible to apply. Borrowers will need to provide good-faith certification that the loan is needed to continue operations during the COVID-19 emergency and that the funds will be used to retain workers and maintain payroll or make mortgage, lease and utility payments. The business has to demonstrate that they were operational as of February 15, 2020 and paid salaries and payroll taxes at that time.
The U.S. Treasury has released details for potential applications as well as the application at
Small business and sole proprietorships can apply starting April 3, 2020 and independent contractors and self-employed individuals can apply starting April 10, 2020 through existing SBA lenders. Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program. We recommend reaching out to your current banking relationship to determine if you can apply with their institution.
While regulatory guidelines prohibit us from completing the applications for you, we are here to assist with the calculation of the covered payroll amount and also the anticipated loan forgiveness calculation. Please contact our office for assistance.