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

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March 26, 2020
Andrew Podgorny and Michael Cortina
SmithAmundsen Financial Services Alert
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The CARES Act expands eligibility for small business loans made under section 7(a) of the SmallCloseup of metallic chain and padlock around dollar bundle 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.

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).