CARES Act for Coronavirus Relief

Earlier today, Congress approved the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which is designed to provide comprehensive relief to individuals and businesses following the unprecedented impact of COVID-19 on our communities. The Act includes approximately $2 Trillion in assistance, and comes as welcome news to many - news that may save their business or help them regain personal financial stability.

We're learning all the details in an effort to be ready to support you in this time of need. As a SBA Preferred Lender we're well positioned to do so. Here's what we know so far:

• Establishes a payroll protection program (PPP) which provides for 100% guaranteed loans to cover specific operating costs. $349bn allocated to cover payroll costs, interest on mortgage payments, rent, and utilities from an expanded Small Business Administration (SBA) loan program with a 100% government guarantee through December 31, 2020.
• A portion  of any loan issued as a part of PPP, up to or equal to eight weeks of covered expenses, will be forgiven by SBA, plus interest; some additional limitations apply.
• Authorizes $17 billion for small businesses for relief of existing SBA 7a loans and $10 billion for emergency grants for operating costs
• $454bn for a new Treasury facility designed to provide liquidity to certain businesses, states and municipalities. The program will include direct loans and loan guarantees to affected eligible companies (which the Fed can leverage further).
• Includes at least $25bn for air carriers, $4bn in loans and $4bn in grants for cargo carriers, and an additional $17bn set aside for businesses critical to National Security
• More than $339bn in financial support, including $100bn for hospitals and $150bn for state and local assistance
• Most individual taxpayers will be entitled to a $1,200 ($2,400 married) income tax rebate plus an additional $500 per child (income eligibility requirements apply)
• Business tax relief including delayed employer payroll tax obligations, an expanded window for carryback of net operating losses
• Provides the SBA Administrator up to 30 days to issue guidance and regulations needed to implement this Act.

We're working diligently to track and review these programs. In the coming days, we look forward to offering our assistance to help navigate your banking needs.