Recent Amendments to the CARES Act and New Guidance from the Small Business Administration
Recent Amendments to the CARES Act and New Guidance from the Small Business Administration on the Paycheck Protection Program
Recent Amendments to the CARES Act include Additional Relief for Small Businesses:
- $310 billion in additional funding for the Paycheck Protection Program (“PPP”)
- Economic Injury Disaster Loan Program (“EIDL”) increased from $10 billion to $20 billion
- Includes the following for eligible entities for the PPP:
- “Agricultural enterprises” with not more than 500 employees. The Small Business Act defines “agricultural enterprises” as those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries
- A guaranteed set-aside of $30 billion in loans for insured depository institutions and credit unions with consolidated assets between $10 and $50 billion
- Another guaranteed set-aside of $30 billion in loans for community financial institutions, insured depository institutions with consolidated assets of less than $10 billion and credit unions with consolidated assets of less than $10 billion
On April 24, 2020, the Small Business Administration released the following:
- New Interim Final Rule on Requirements for Promissory Notes, Authorizations, Affiliation and Eligibility can be found here: https://home.treasury.gov/system/files/136/Interim-Final-Rule-on-Requirements-for-Promissory-Notes-Authorizations-Affiliation-and-Eligibility.pdf
- New FAQs issued on the PPP can be found here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
If you applied for a PPP Loan and have yet to be approved because previous funds ran out, we recommend that you contact your lender to ensure that your application is still in line for consideration. If you want to apply for a PPP Loan but have not done so, funds are on a first-come first-served basis, so we recommend contacting an eligible lender as soon as possible.
Find an eligible lender here: https://www.sba.gov/paycheckprotection/find
The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters r*elated to COVID-19.