On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law. The CARES Act’s purpose is aimed at reducing the economic impact of the COVID-19 pandemic and stimulating the economy with a $2.1 trillion dollar infusion.
Among other things, the CARES Act amends Section 7(a) of the Small Business Act creating the “Paycheck Protection Program (the “Program”). The Program broadens relief to a segment of small businesses other than those that would otherwise be ineligible to receive SBA 7(a) loans. The Program will apply retroactively from February 15, 2020 until June 30, 2020. Below are some highlights: