The Creation of the Paycheck Protection Program Under the Cares Act, As Well As the Expansion of Key SBA Programs, Should Help Small Businesses and Contractors.
As the impact of COVID-19 continues throughout the construction industry, many businesses are finding it difficult to make payroll and pay other essential business expenses. Fortunately, help is on the way through the passage of the Coronavirus Aid, Relief and Economic Security Act, which provides more than $2 trillion in stimulus to the U.S. economy. This article focuses on the newly enacted SBA Paycheck Protection Program, which aims to keep workers employed and small businesses afloat.
The Paycheck Protection Program makes all businesses with less than 500 employees or those businesses who would otherwise comply with the size standards under Title 13 of the Code of Federal Regulations eligible for SBA loans under the CARES Act until June 30, 2020. By extending the program to all businesses with less than 500 employees, the CARES Act dramatically increases the number of businesses who will be able to obtain SBA loans.