On Friday, March 27, 2020 President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2.2 trillion package providing relief to individuals and businesses impacted by the Coronavirus outbreak. The act allocates an estimated $560 billion of cash payments and additional unemployment benefits for individuals, $339.8 billion for state and local governments, $500 billion for large corporations, $377 billion for small business relief loans and grants, and $223 billion for organizations related to education, public health, and other categories.
Included in the CARES stimulus package is approximately $349 billion for a business loan program to be administered by the US Small Business Administration (SBA), designed to bolster the financial status of small businesses and their employees and enable them to persevere through this period of economic hardship. SBA Section 7(a) loans are commonly available through banks and other lenders, and the CARES Act expands on this lending platform through a new loan program – the “Paycheck Protection Program.” The program, which is aimed at small and mid-size businesses including franchisors and franchisees, can be used for payroll support, paid sick or medical leave, employee salaries, mortgage, rent, and utility payments, insurance premiums, and other debt obligations. For more information, check with your local lender or other banking partners with whom you have existing relationships.