Coronavirus Aid, Relief and Economic Security Act (Care Act) Passes the House

The CARE Act has just passed in the House of Representatives.  Here are some of the initial provisions of the act, with  more details to come:

The legislation passed by Congress contains several provisions to provide emergency assistance for Small Businesses affected by the pandemic.  The next step is for the Small Business Administration (SBA) to issue guidance to banks such as Chase on how and when to provide much needed loans to our small business clients under the Act.  We will update this information as we learn more.

This is our current understanding of the provisions in the bill for Small Business owners:

§  Paycheck Protection Loan Program expands loan eligibility under the SBA 7a program with the intention to assist businesses with covering costs related to payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt.

§  Borrowers will need to certify that they’ve been impacted.  There will be no personal guarantees or collateral associated with the loan. Detailed application requirements are still to be determined.

§  Loan amount maximum is 2.5 times average monthly payroll or up to $10 million.

§  There will also be a payment deferral and loan forgiveness program. 

Summary provide by our partners at Chase Bank.  More Details to come...