Updated April 3, 2020
The CARES Act (Coronavirus Aid, Relief, and Economic Security Act), passed in the U.S. Congress and is expected to be signed into law. Among many other things, the Act amends the Small Business Act to create a new Paycheck Protection Business Loan Program. For a limited time, the Small Business Administration (SBA) will provide 100% federally-backed loans to nonprofit organizations with 500 or fewer employees to help pay operational costs like payroll, rent, health benefits, insurance premiums, utilities, etc. Under the CARES Act, some of these loan amounts are forgivable. However, the amount that may be forgiven will be reduced if the employer makes any employee cuts or reductions in wages.
This article provides details on the Paycheck Protection Business Loan Program.