On March 27, 2020, Congress passed, and the President has signed
into law, the Coronavirus Aid, Relief, and Economic Security
(CARES) Act. The CARES Act includes relief to small businesses
across the country in the form of up to approximately $350 billion
in aggregate loans to be administered by the Small Business
Administration (SBA) and its network of lending financial
institutions, referred to as Paycheck Protection Loans. Each loan
is intended to be used to cover an eligible borrower's payroll,
mortgage interest, rent and/or utilities expenses for up to eight
weeks from origination of the loan. If an eligible borrower uses
the loan for qualifying expenses while maintaining its workforce,
some or all of the loan amount can be forgiven without negative
credit or tax consequences.
