The Coronavirus Aid, Relief, and Economic Security Act, or “CARES Act,” provides aid for small businesses, large corporations, hospitals and public health agencies, and state and local governments.
Particularly noteworthy are two small business loan programs expanded by the CARES Act:
- The $349 billion small business loan “Paycheck Protection Program” (PPP), which expands the scope of businesses eligible for Section 7(a) SBA loans, alters the maximum loan amounts and permitted uses of loan proceeds, and affords repayment relief and loan forgiveness to borrowers.
- The “Economic Injury Disaster” (EID) loan program. EID loans are long-term loans with varying repayment terms of up to 30 years, with loan amounts determined by actual economic injury, up to $2 million, with a 3.75% interest rate. An online application for the EID loan program can be found here.
Here is helpful table comparing key terms of PPP loans versus EID loans.