Client Alert: CARES Act Creates New $349 Billion SBA Loan Program to Offer Loans to Eligible Small Businesses

On March 27, 2020, Congress approved the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide financial assistance to individuals and businesses. Title I of the CARES Act (the “Keeping Workers Paid and Employed Act”) includes several provisions intended to help small businesses suffering the adverse economic effects of the coronavirus (“COVID-19”). Among those is the establishment of a new loan program called the “Paycheck Protection Program” (“PPP”) and the allocation of $349 billion for the making of PPP loans. Additionally, for eligible borrowers, a portion, and potentially all, of the amount of funds borrowed under this program may be forgiven without payment. 

This Client Alert, authored by Anthony Zeoli, Steven Hartmann, Karen Hayes and Meghan Tepas, the attorneys who make up the Firm's CARES Act Task Force, details what this will mean for businesses.