Coronavirus Aid Relief & Economic Security Act (CARES)
Federal resources for small businesses have been made available through the CARES Act. The Paycheck Protection Program (PPP) is included in the act, and provides $350 billion of assistance to help keep employees on payroll and cover important business expenses through a forgivable loan program.
Other highlights of the act include:
- Companies with under 500 employees can obtain loans of up to $10 million
- loan size is based on business’s average monthly payroll for 2.5 months
- any business assigned a NAICS code beginning with 72 (covering hotels, casino hotels, restaurants and bars) with not more than 500 employees per location are also eligible for the program
- Loans can be used to cover payroll, employee benefits, mortgage, rent and utilities
- The total amount spent on payroll costs, benefits, mortgage payments, rent and utilities between February 15 – June 30 is eligible to be forgiven from the loan
- Self-employed individuals and independent contractors are eligible
- The loans are guaranteed 100% by the Small Business Association (SBA)
- Loans can be accessed through any FDIC bank, credit union or fintech lender
To assist in clearing up confusion, see below resources; flow chart, analysis, factsheet and PPP application. We recommend viewing them in order.
Contact your banker to get the process started.
1. Flow Chart – Overview of the CARES Act for Small Business
2. Coronavirus Aid, Relief & Economic Security (CARES) Act – Analysis
3. Paycheck Protection Program (PPP) Information Sheet: Borrowers
4. Paycheck Protection Program – Borrower Application Form