President Trump has signed three pieces of legislation to deal with economic strains resulting from the coronavirus pandemic.
The first bill provided $8.3 billion for health providers, disease testing and small-business loan subsidies. A second relief package of about $100 billion went into effect that included tax credits for employers offering paid sick leave and increases to unemployment benefits and food assistance. Then the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed, providing around $2 trillion in wide-reaching measures that include direct payments to citizens, loans and grants to small and medium businesses, and support for medical and first responders.
Disaster assistance loans, issued through the Small Business Administration, are one aspect of the emergency relief funding. Economic injury loans of up to $2 million are available at a low interest rate to businesses in declared disaster zones (of which all 50 states have been declared for COVID-19). More information, including how to apply, is available at www.covid19relief.sba.gov.
Also available is the Paycheck Protection Program (PPP), which expands the emergency lending program housed in the SBA’s 7(a) lending program. The PPP contains $349 billion in lending capacity available to businesses and qualifying entities with fewer than 500 employees and allows for federally insured, fully forgivable loans up to $10 million if all criteria are met. PPP loans may be obtained through any of the 1,800 participating SBA approved 7(a) lenders or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution.
