Liskow & Lewis is committed to serving its business clients as they adapt to the unprecedented economic consequences of the ongoing COVID-19 pandemic. As part of this commitment, Liskow’s Business Group offers this site as a resource for the lending programs established by the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), which provides economic relief for small and medium firms, including non-profits.
For small firms of generally 500 or fewer employees, the CARES Act directs the U.S. Small Business Administration (SBA) to implement two programs: (1) the new Paycheck Protection Program (PPP), providing federally guaranteed and forgivable loans for payroll and operational needs, and (2) an expanded Economic Injury Disaster Loan (EIDL) program, strengthening the emergency loan assistance available for working capital needs. Other than certain narrow exceptions for hospitality and food service providers, franchises, and faith-based organizations, the PPP and EIDL remain subject to existing SBA affiliate rules.
As of April 24, 2020, additional funding has been approved for the PPP ($310 billion) and for the EIDL program ($60 billion). As a result, the SBA should begin processing applications for these programs again. Because of high demand and the first-come, first-served nature of the programs, it is anticipated that funding will be exhausted again. Contact an SBA-approved lender as soon as possible to begin (or continue) the PPP application process, and consult the SBA website for the application for the EIDL program.
For medium firms of between 500 and 10,000 employees, the CARES Act directs the U.S. Treasury Department to implement a new direct lending program, which will provide low-interest loans, loan guarantees, and other investments for firms to be able to retain their workforce.
In the tabs below, you will find articles by Liskow & Lewis attorneys summarizing the CARES Act lending programs, as well as helpful links to more information from the Treasury Department and the SBA.
The Treasury Department plans to issue further guidance in the coming days and weeks, and we will continue to update this page with further information. Please contact John Anjier, Nina Skinner, C.J. Miller, or Madeline Thomas with any questions.
Lending Program Summaries
Links to More Information