CARES Act: Accessing $349-Billion Paycheck Protection Program for Small Business Loans

A network of community banks and financial institutions are gearing up to implement one of the most ambitious economic relief programs in U.S. history as small businesses across the country weather the coronavirus and its economic fallout.

The loan program is operating on a first-come-first-serve basis, and once the fund is out of money the loans will no longer be approved. To get a head start on the process, here (member login required) are the details on how small businesses can access the new federal Paycheck Protection Program.

The $2-trillion coronavirus relief package signed last week, officially known as the CARES Act, includes nearly $350 billion for a federal small business loan program called the Paycheck Protection Program. The program is designed to get cash in the hands of suffering small businesses quickly, with less red tape and fewer guardrails than the U.S. Small Business Administration’s (SBA) existing loan programs. It is designed to incentivize business owners to keep employees on payroll by offering them loan forgiveness.

The new loan program designed to keep people employed and on company payrolls to facilitate a faster return to work is separate from existing federal loan programs, including the SBA’s disaster relief loans. To learn about the SBA’s other relief programs, click here to visit the SBA’s COVID-19 resource center.