On April 2, 2020, the Small Business Administration (SBA) issued its interim final rule regarding the implementation of sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security (the CARES Act). The CARES Act is the third piece of federal legislation related to the 2020 Coronavirus pandemic, and it provides approximately $2 trillion in sweeping emergency measures to mitigate the resulting public health and economic crisis facing individuals, families, and businesses.
The cornerstone of the CARES Act’s relief package for small businesses is the Paycheck Protection Program (PPP), under which the SBA will guarantee up to $349 billion in small business loans.
More about PPP
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive PPP loans to cover their payroll and certain other expenses through existing SBA lenders. Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive PPP loans to cover their payroll and other certain expenses through existing SBA lenders. Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the PPP. The SBA encourages businesses to consult with their local lenders to find out if those lenders are participating in the PPP.
The deadline to apply for a loan is June 30, 2020. Although the PPP loan application closes on that date, the PPP Guidance encourages businesses to apply as quickly as possible due to concerns that high demand will cause the PPP to reach its funding cap of $349 billion prior to that date.
The attorneys at Stone Crosby, P.C. can assist you in preparing the PPP application, and we will work with your lender on your behalf. There is no cost to you as the borrower for us to assist you. Contact an attorney at Stone Crosby, P.C. to find out if you might be eligible for a PPP loan to cover your payroll expenses and business expenses during this unprecedented time.