On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. The legislation includes a new loan program – the Paycheck Protection Program (PPP) administered through the Small Business Administration (SBA) – that provides up to $349 billion in loans to eligible entities, with such loans being subject to forgiveness under certain circumstances. The loans are 100% federally guaranteed and available under a new subsection 36 of Section 7(a) of the Small Business Act.
The CARES Act provides for small business concerns (qualified under the Small Business Act) and other businesses with less than 500 employees (as described below) to be eligible for PPP loans.
SBA 7(a) lenders have begun accepting applications for PPP loans. Applications must be submitted by June 30, 2020. Eligible applicants are encouraged to apply early as there are limited funds for the PPP.
The SBA has issued additional regulatory guidance for the PPP loans in the last few days. This alert discusses the recent updates that small businesses should know.
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Croke Fairchild Morgan & Beres is a corporate law firm providing services to businesses, private equity and venture firms and their portfolio companies, public companies, founders and family offices. Formed by partners who worked at preeminent international law firms, the firm boasts a deep bench of sophisticated and experienced corporate lawyers. With offices in Chicago, Lake Forest, and Milwaukee, our team provides exceptional legal service while affording our clients the benefits of working with a small, agile, and driven law firm. For more information, please visit us online at crokefairchild.com