Last week, the U.S. Senate and U.S. House passed the Coronavirus Aid, Relief and Economic Security (CARES) Act by an overwhelming bipartisan vote and President Trump quickly signed the legislation into law. As highlighted in last week’s News & Views e-newsletter, there are numerous provisions impacting small businesses including but not limited to:
- Providing nearly $350 billion in federally guaranteed loans via the Paycheck Protection Program (PPP) to provide eight weeks of cash-flow assistance to small businesses who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers to remain employed and affected small businesses and our economy to quickly snap back after the crisis.
- Allowing the PPP to cover payroll costs, paid sick leave, supply chain disruptions, employee salaries, health insurance premiums, mortgage payments and other debt obligations to provide immediate access to capital for small businesses who have been impacted by the coronavirus.
- Providing $17 billion in small business debt relief by requiring the Small Business Administration (SBA) to pay all principal, interest and fees on all existing SBA loan products for six months to provide relief to small businesses negatively affected by the coronavirus.
- Providing $10 billion for expanded eligibility for SBA Economic Injury Disaster Loans, including emergency grants, an advance of $10,000 within three days to maintain payroll, provide paid sick leave and to service other debt obligations.
As Big “I” members and their clients look for guidance in the days, weeks and months ahead, the Big “I” is making the most up-to-date information available. With that in mind, the Treasury Department recently posted helpful information including a brief overview of the PPP, a fact sheet for borrowers, and the loan application form. Additional information on the program can be found at the Small Business Administration (SBA). These documents should provide a great deal of valuable information for Big “I” members and their clients.
Additionally, InsurBanc stands ready to support agencies and their clients through the PPP. They are recognized as a preferred lender by the SBA, the highest bank designation awarded to top-tier SBA lenders. You can find more information from InsurBanc.
Wyatt Stewart is Big “I” senior director of federal government affairs.