This is an aid program for US businesses and individuals due to the Coronavirus Pandemic. We expect more information and details to emerge online as the law is implemented. We encourage you to read the entire document particularly the sections below.
For businesses we urge you to read Sections 1102, 1106, 2101- 2107. Subtitle C- Labor Provisions. There is also an employee retention credit which is part of the Cares Act that may assist companies that have been shut down, partially shut down or have had a significant reduction of sales.
For individuals Subtitle B- Rebates and Other Individual Provisions
Here are some takeaways from the loan new act:
- It applies to virtually all business
- It will cover employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments
- No personal guarantee’s
- No collateral
- Covers self employed people and independent contractors
- All or part of the loan may be forgivable based on the formulas and specified uses of the funds for a limited period of time in the act subject to rules and limitations
Loan Implementation- from what we understand, the loan can be administered at your bank. I urge you to contact your bank for details if they are participating with this and their procedures.