Overview of SBA Loans Under the Paycheck Protection Program Provision of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act
On Friday, March 27, 2020, the Federal government enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide economic relief for the devastation resulting from the current COVID-19 pandemic. The largest spending law in US history, the CARES Act includes provisions that directly impact individuals and businesses on numerous levels.
One provision of the CARES Act provides Paycheck Protection Loans (“PPLs”) intended to assist small businesses, including not-for-profit organizations, in maintaining their payroll and operating costs during this time of uncertain and diminished revenue. This will be done through federally guaranteed loans administered by the Small Business Administration (“SBA”) and made by SBA-approved lenders.