On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2-trillion stimulus bill, with the most significant impact for small businesses resulting from the allocation of $349 billion for small-business loans. Under the “Paycheck Protection Program” created by the CARES Act, eligible small businesses will have access to government-backed forgivable loans (“Loan(s)”) through an expansion of Section 7(a) of the Small Business Act, which is administered by the Small Business Administration (“SBA”). The Loans are available until June 30, 2020.
This Alert addresses the Loans and changes to other government-supported loans available to small businesses through the SBA, as well as certain employment issues and tax law changes that affect such small businesses. The SBA is expected to issue regulations to govern the implementation of the Paycheck Protection Program. The Secretary of the Treasury will be releasing additional guidance and additional Alerts will be published as regulations or additional guidance is released.
Read full Alert here.
For more information on the CARES Act and emerging legal issues on the COVID-19 crisis, visit our COVID-19 Resource Center here.
Authored by Stuart D. Freedman, Andrew J. Fadale, Ian L. Levin, David J. Passey, Joseph P. Vitale, David M. Rothenberg, Adam J. Barazani and Travis Gantt.
If you have any questions concerning this Alert, please contact your attorney at Schulte Roth & Zabel or one of the authors.
This communication is issued by Schulte Roth & Zabel LLP for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. ©2020 Schulte Roth & Zabel LLP.
All rights reserved. SCHULTE ROTH & ZABEL is the registered trademark of Schulte Roth & Zabel LLP.