Cares Act Highlights
On March 31, 2020 H. R. 748, ‘‘Coronavirus Aid, Relief, and Economic Security” (CARES) Act became effective. The CARES Act provides several relief programs targeting both individuals and businesses. The Payroll Protection Plan and expansion of the Economic Injury Disaster Loans & Loan Advances (detailed below) are two of the programs targeting small businesses.
Payroll Protection Plan (PPP)
The CARES Act allocated $670 billion to help small businesses keep workers employed amid the pandemic and economic downturn.
Economic Injury Disaster Loans (EIDL) & Loan Advance
Administered by the Small Business Administration (SBA) – Colorado small businesses may seek up to $15K of working capital loans that can provide economic support to small businesses to help overcome the temporary loss of revenue during COVID-19.
Small Business Debt Relief Program
The SBA will automatically pay the principal, interest, and fees of current 7(a) loans for a period of six months.
Additional Debt Relief
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.