COVID-19 Update: Payroll Protection Program

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On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the Act) to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic. The Small Business Administration (SBA) received funding and authority through the Act to modify existing loan programs and establish a new loan program to assist small businesses nationwide adversely impacted by the COVID-19 emergency. The Act temporarily permits SBA to guarantee 100 percent of 7(a) loans under a new program titled the “Paycheck Protection Program.”  The Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program.  Banks are beginning to process applications, so it is important to reach out to your banker to get the process started.  Please see the application here.