Coronavirus Aid, Relief, and Economic Security (Cares) Act Updates

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Mar 27, 2020
2:30 pm

April 27, 2020

The Paycheck Protection Program reopens today amid huge demand.  The initial round of funding under the CARES Act of $349 billion lasted about a week, this round is projected to go much faster.  Below is a summary of new measures implemented for round 2 by the SBA and Treasury.

  • Round 2 is beginning Monday, April 27, 2020 at 10:30 am EDT;
  • Pacing the number of loans processed in the E-Tran system for participating lenders
  • Instituting a maximum dollar amount at 10% of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion (i.e. $60 billion cap);
  • Implementing operational standards to ensure that lenders access PPP funds based on their asset size;
  • Ensuring the Paycheck Protection Program continues to operate on a first-come, first-serve basis so that every small business has access to PPP loans to sustain their business and retain their employees;

April 22, 2020 - PPP 2.0

Congress, White House readies $310B in new funding after business advocates made desperate calls for additional funding for the PPP.

The $349 billion Paycheck Protection Program is getting a much-needed infusion of capital.  Lawmakers and the Trump Administration agreed Tuesday to provide more than $310 billion in new funding for the program.  The bill next goes to the House where it is expected to pass on Thursday. Funding could be made available to banks for new applications as early as Thursday or Friday.  

There has been talk about changes in rules, qualifications and disbursement criteria to make sure smaller businesses (and smaller banks) get more than their fair share of funding.  

How long will the funding last?  Gauging from the demand for PPP 1.0, banking industry experts expect the new funding to go fast as well.

April 16, 2020

Earlier today the SBA Paycheck Protection Program – which offers forgivable loans to small businesses derailed by the COVID-19 pandemic - reached its initial $349 billion funding limit.  The SBA is unable to fund new loans through banks participating in the program at this time.

Small Businesses Need Our Help

We urge everyone to reach out to our leaders in the Federal Government and ask them to approve additional funding for the PPP loan program so that small businesses can get the relief they need.

Please call 202 224-3121 now and ask to speak with the one of the leadership offices listed below.

  • House Speaker Pelosi
  • House Minority Leader McCarthy
  • Senate Minority Leader Schumer
  • Senate Majority Leader McConnell

Please call your senators below:


New Jersey:

March 31, 2020

Lenders just received information from the Treasury Department and US Small Business Administration. Small businesses and sole proprietorships can apply for PPP loans starting April 3, 2020. Independent contractors and self-employed individuals can begin applying on April 10, 2020.

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of .5%.

For more information, see our CARES Act Guide & Checklist for Small Businesses that outlines how you can start preparing for the application in advance and visit our COVID-19 Business Resource Center for more information about the SBA CARES Act PPP program.

March 27, 2020

The CARES Act has been signed into law, providing $2 trillion in economic relief for households and businesses in the United States. This Act includes a Payroll Protection Program for small businesses that will provide $350 billion of loans designed to keep employees on the payroll and businesses running.

The Secretary of Treasury has communicated that loans through the Payroll Protection Program will not be available until later next week. There are a lot of questions that still need to be answered by both the Treasury Department and the US Small Business Administration before lenders can begin to offer businesses these loans.

Here are important highlights from the CARES Act:

  • It authorizes $350 billion for three months of 100% guaranteed 7(a) loans to cover payroll costs, interest on mortgage payments, rent obligations, and utilities.
  • The program will run from February 15, 2020 through June 30, 2020.
  • Small businesses including self-employed and individual contractors can apply.
  • The maximum loan size for borrowers is capped at the lesser of 250% of the average monthly payroll costs (with a lookback of one year or relevant period for seasonal businesses), or up to a maximum of $10 million.
  • Payments on these loans must have a 6-month deferral of principal and interest.
  • Forgiveness is not taxable.
  • There is no collateral or personal guarantee required.
  • There are no upfront or ongoing borrower fees.
  • There is no prepayment penalty.

You can stay informed about the many resources and programs available to you by visiting our Covid-19 Business Resource Center.  Or, for more information about other financial resources offered by the US Small Business Administration, you can visit


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