The Nuts and Bolts of the CARES Act Economic Disaster and Payroll Protection Loan Programs
By Anthony Diosdi Recently, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Cares Act provides for special loan programs for businesses impacted by the coronavirus (COVID-19) pandemic. There are two types of relief a business can apply to receive. They are both discussed in detail below.Economic Injury Disaster LoansThe Small Business Administration (“SBA”) provides low-interest Economic Injury Disaster Loans (EIDLs) that have been available to small businesses following a disaster declaration. EIDLs are authorized by Section 7(a) of the Small Business Act.EIDLs are typically granted after a natural disaster. Each EIDL provides up to a $2 million loan. These loans may be used to pay fixed debts, pay fixed debts, payroll accounts payable, and other bills. The current interest rate on…