Paycheck Protection Program – Financial Assistance Through “Forgivable” SBA Loans

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March 27, 2020
Andrew Podgorny and Michael Cortina
SmithAmundsen Financial Services Alert
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Updated April 7, 2020

The CARES Act expands eligibility for small business loans made under section 7(a) of the Small Business Act by enacting a new Paycheck Protection Program (the “Program”). Program loans will be 100% guaranteed by the Federal government. The Program is in effect for the period of February 15, 2020 through June 30, 2020. Businesses and sole proprietors may apply now. Independent contractors and self-employed individuals may apply beginning on April 10, 2020.

Loan Forgiveness

Loan forgiveness is available for loans made pursuant to the Program.

Grants for Emergency Economic Injury Disaster Loans

The CARES Act expands eligibility for economic injury disaster loans made under section 7(b)(2) of the Small Business Act.

Bankruptcy

Amends the Small Business Reorganization Act (SBRA).