The Senate has approved the most recent version of CARES and our sources believe House concurrence and bill signing by President Trump should happen soon.
Within this Act, are several Federal government programs designed to help small businesses struggling in the wake of the COVID-19 financial collapse. These programs will ensure that these businesses get cash-in-hand to continue operating and – most importantly – to keep their employees working. Congress has not finished the fine print in the legislation, but we know this version of CARES provides for the following:
- Starting with the April 2020 payments the SBA would pay 6 months of principal and interest on all existing SBA Loans under the 7A and 504 Loan Programs.
- The Paycheck Protection Program (PPP), a new program designed to rapidly get capital into the hands of small businesses to cover 2.5 months of payroll, healthcare and related expenses to a maximum of $10 million. Under the bill’s current form, the borrower would not be required to repay the portion of this loan used in accordance with the plan.
- Size limitations on the popular SBA Express loan program would be increased from $350,000 to $1 million for the balance of 2020.
- We believe that these programs, if enacted, will be of special interest to applicants from the hard-hit hospitality industry and restaurant industries.
We have created the Customers Bank SBA CARES Taskforce to help you navigate these new and changed federal disaster loan programs. Our team will continuously gather content including information, application forms, rules, processes, guides and tips for our business customers. This material will be posted to our disaster relief funding webpage, located here. We recommend that you bookmark the page and revisit it frequently for updated information. When Congress finishes its work, we will update our website with details of the authorized programs.
The Customers Bank SBA CARES Taskforce will soon announce a series of webinars to provide more details and answer questions. You can meet our SBA Team here.
In addition to disaster relief that is being offered by the government, Customers Bank is reaching out to make you aware of traditional SBA financing programs and other financial assistance options being offered by the bank, including lines of credit to help businesses through this challenging economic time. We are committed to providing $200 million in new small business lending to qualifying companies.
Should you have any questions or if there is anything we can do to assist you, please do not hesitate to contact our team.