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CARES ACT - Greg Abbott

CARES ACT The Coronavirus Aid, Relief, and Economic Security ( CARES ) Act was passed by Congress on March 27, 2020. The programs and initiatives in the Act are intended to assist business owners and nonprofits with current needs due to the COVID-19 crisis. Following President Trump s signing of the CARES Act, the Small Business Administration (SBA) and the Department of Treasury announced a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need. The CARES Act establishes a new $349 billion Paycheck Protection Program.

Borrowers may apply for PPP loans as well as other SBA financial assistance, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans, and also receive investment capital from Small Business Investment Corporations (SBICs). However, businesses cannot use a PPP loan for the same purpose as other SBA loan(s).

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