Summary of CARES Act SBA Paycheck Protection Program & Loan Forgiveness Program
The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law March 27, 2020, includes provisions aimed at providing relief to small businesses and nonprofts impacted by COVID-19. The resources included as part of the act include the launch of the U.S. Small Business Administration’s (SBA’s) Payment Protection Program (PPP), which authorizes $349 billion of federally guaranteed loans to help businesses and nonprofits maintain payroll and prevent layoffs from occurring.
The CARES Act’s PPP can offer loans up to $10 million and with 100% loan forgiveness if businesses sustain their pre-COVID-19 payroll levels through June 30, 2020. Additionally, the act temporarily expands eligibility for SBA Economic Injury Disaster Loans.
This document summarizes key provisions of the CARES Act, the PPP and the loan forgiveness program and answers key questions on who is eligible, allowable uses for PPP loans, application requirements and more.