Payment Protection Program and Loan Forgiveness
- Provides $350 billion for 100% federally guaranteed loans for eight weeks of assistance to small businesses and 501(c)(3) non-profits.
- Sole-proprietors, independent contractors, and other self-employed individuals are also eligible for these loans.
- Loans can be forgiven when used for payroll costs, interest on mortgage obligations, rent, and utilities over an eight-week period.
- SBA-certified lenders and non-SBA lenders are authorized to make Payment Protection loans.
- All lenders participating in the Payment Protection Program, including banks, credit unions, and other financial institutions, will be moved to delegated authority which allows lenders to process loans quickly without SBA approval.
- The Treasury Secretary is given the authority to work with the SBA to expedite the approval process and bring new lenders into the program.
- Maximum loan amount for SBA Express loans, which require less documentation and less paperwork, is increased from $350,000 to $1 million through December 31, 2020.
Small Business Debt Relief
- $17 billion in small business debt relief by requiring the SBA to pay all principal, interest, and fees on all existing SBA loan products for six months to provide relief to small businesses negatively affected by COVID-19.
- Provides an employee retention tax credit up to $10,000 per employee per quarter kept on an employer’s payroll through the end of 2020.
- Companies eligible for the tax credit must have fully or partially suspended operations due to a government order and suffered a significant decline in revenues.
- Allows companies to defer the 6.2% Social Security payroll tax on all wages up to $137,700 through 2020.
- The taxes must be repaid in equal installments in 2021 and 2022.
Emergency Economic Injury Disaster Loan (EIDL) Grants
- Expedites access to capital for small businesses who have applied for an SBA EIDL.
- Businesses can request an advance of up to $10,000 on the loan to provide covered leave, maintain payroll, and pay debt obligations.
Entrepreneurial Development Programs
- Provides grants and funding to offer training, counseling, and assistance to small businesses affected by COVID-19.
- $240 million in grants to SBA resource partners, including Small Business Development Centers and Women’s Business Centers.
- $25 million in grants for resource partner associations to provide online information and training.
- $10 million in funding for the Commerce Department’s Minority Business Development Agency’s Minority Business Centers.
- Allows for federal grant funds appropriated to the State Trade Expansion Program (STEP) in FY18 and FY19 to remain available for use through FY21.
- Allows for state STEP participants to be reimbursed for events canceled due to COVID-19, so long as the reimbursement amount does not exceed their federal grant amount.
Ensuring Banks and Credit Unions Can Continue Lending
- Provides temporary relief to allow financial institutions of all sizes to prioritize extending more loans to more American consumers and small businesses during this outbreak.
- Allows community banks to deploy additional, needed capital to consumers and businesses through the end of this public health emergency or December 31, 2020, whichever comes first.