For an overview of every part of the CARES Act, please CLICK HERE.
The new bill (AKA the CARES Act) includes New Small Business Forgivable Loan to help cover payroll, benefits, rent, and utilities
The CARES Act provides employers with fewer than 500 employees to apply for a 100% forgivable loan of up to the lesser of 2.5x monthly payroll incurred in the one year period prior to obtaining the loan or $10,000,000.
As long as the employer uses these funds to pay for payroll, benefits, interest(not principal), rent and utilities, AND the employer retains their employees from 3/1/2020-6/30/2020, then the loan is completely forgiven by the federal government with no tax penalty.
There will be provisions to allow for the re-hiring of terminated employees within 30 days of the enactment of the law in order to still qualify for this forgiveness.
Our incredible team at Maynard, Cooper & Gale has already put together a great summary of this provision and you can CLICK HERE to read more.
We don't have any further information yet on lenders for this loan, but we will update this page.