The Coronavirus Aid, Relief & Economic Security Act (CARES) & Federal Relief Programs

Posted by Melanie Trainor

Info icon  IMPORTANT UPDATE: The U.S Small Business Administration has announced that, at this time, they are currently unable to accept new applications for the Paycheck Protection Program as well as the Economic Injury Disaster Loan (including advances) based on appropriations funding. Those who have already submitted applications for the EIDL will continue to be processed on a first-come, first served basis. Please return to this page for further updates on these programs and any new opportunities for government assistance and support.

The U.S. Senate passed the Coronavirus Aid, Relief and Economic Security Act (CARES) by a unanimous vote of 96-0 to aid small businesses with the impacts of the COVID-19 Health Crisis. With $2 trillion allocated for businesses, individuals, federal agencies, and state and local governments, the CARES Act has been designed to distribute capital quickly and largely.

There are two program options to consider: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL). Businesses are able to apply for both relief programs, but the funds cannot overlap for the same expenses.

IRS Provides Guidance under the CARES Act on Net Operating Loss Provisions > (Updated 04/09/20)

Paycheck Protection Program (PPP)

The PPP is one of the largest sections of the CARES Act, this program sets aside $350 billion in government-backed loans for small businesses.

  • Businesses with 500 employees or fewer can receive up to 2.5 x their average monthly payroll ($10mm cap), and a 4% fixed interest rate, no payments for the first 6-12 months and a 10-year term
  • Proceeds can be used for payroll expenses, employee salaries, mortgage interest, rent and utilities, as well as interest on debt incurred before 02/15/2020
  • With this program you can apply for loan forgiveness if employees are kept on a payroll for eight weeks

Paycheck Protection Program Borrowers Fact Sheet >

Paycheck Protection Program Loans FAQs > (Updated 04/08/20)


Economic Injury Disaster Loans & Loan Advance (EIDL)

Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan. This loan is designed to provide financial relief for businesses that are experiencing a temporary loss of revenue.

  • Businesses can get up to $2 million at a 3.45% interest rate, no payment for 6-12 months and up to 30-year term
  • Funds (up to $10,000) will be made available within three days of a successful application and do not need to be repaid
  • Proceeds can be used for payroll, fixed debts, accounts payable and for other expenses that can’t be paid because of the COVID-19 Health Crisis
  • Work directly with the U.S. Small Business Administration

SBA Paycheck Protection Program: A Guide for the TriMark Customer >


Main Street Lending Program (MSLP)

Federal Reserve Announces Launch of the Main Street Lending Program > (Updated 04/09/20)

Term Sheet: Main Street New Loan Facility > (Effective 04/09/20)

Term Sheet: Main Street Expanded Loan Facility > (Effective 04/09/20)


To download the Paycheck Protection Program Borrower's Application Form click here

To apply for COVID-19 Economic Injury Disaster Loan at U.S. Small Business Administration click here


For more information on which businesses are eligible, what lenders are looking for, how much can be borrowed, how to calculate your average monthly payroll costs, and questions about whether a loan will be forgiven, please view this document from the U.S Chamber of Commerce.

More Information from the U.S. Small Business Administration

More Information from Forbes

More Information from Venable LLP

More information from Restaurant Hospitality

More Information from Nixon Peabody

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