April 1, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act supports small businesses by:

• Providing $350 billion in forgivable loans for small businesses through the Paycheck Protection Program.
• Providing advances on SBA disaster loans that never have to be repaid.
• Forgiving existing non-disaster SBA loan payments over the next six months.

For those tenants who may be concerned about taking on additional debt during this time, the borrower fact sheet is useful in providing some comfort in this regard (see below). Note that SBA says not more than 25% of any amount forgiven may be for “non-payroll” cost (presumably, rent).

IMPORTANT: These loans will be provided on a first-come, first-served basis.

From the Borrower Fact Sheet:

• The loan amounts will be forgiven as long as:
  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made
  • Employee and compensation levels are maintained.
• Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
• Loan payments will be deferred for 6 months.

Additional information available at https://home.treasury.gov/cares.

• Paycheck Protection Program: Overview (PDF)
• Paycheck Protection Program: Lender Fact Sheet (PDF)
• Paycheck Protection Program: Borrower Fact Sheet (PDF)
• Paycheck Protection Program: Application (PDF)