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CARES Act & Other Relief Options


The CARES Act was signed into law on March 27, 2020 providing many relief options for small businesses. The new options include a loan from the Small Business Administration of which much may be forgiven (i.e. Does Not Have to Be Repaid, EVER!), an emergency grant from the SBA in relation to an Economic Disaster Relief Loan, of which a portion may not have to be repaid under certain conditions, and a new Employee Retention Credit for 50% of wages paid by small businesses to employees while partially or fully closed. You can’t have it all! These relief programs are generally mutually exclusive.

Need Legal Guidance Regarding Relief Claims?

Who is Eligible

What are the Loan Terms

How and When to Apply

How to Calculate How Much You Can Borrow

What Can You use Loan Funds On?

How Much Do I Have to Pay Back?


7(a) Loan Eligibility Exclusion

Who is an Eligible Employer?

What Wages Are Eligible

What is the Tax Credit Amount?



Emergency Grant

Interaction with SBA 7(a) Loan

How to Apply

More details about the CARES Act?

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law on March 27, 2020. The CARES Act ​creates the Paycheck Protection Program​ (“PPP”)​ ​which makes major changes to the Small Business Administration’s Section 7(a) Loan Program ​in response to the COVID-19 economic injury. ​Under the PPP most small businesses qualify for a 7(a) Loan​. Some of the Loan may be forgiven. The loan is unsecured and there is a deferral period. The CARES Act also provides for a new Employee Retention ​Tax ​Credit​ related to wages paid to employees while a business was closed, partially closed​, or down more than 50% in gross revenue for a quarter. ​The CARES Act also provides for an emergency grant in relation to an Economic Injury Disaster Loan (EIDL). ​​However, you cannot get it all! Business owners are not eligible for the Employee Retention Credit if they take the 7(a) Loan​ and any EIDL loan will limit 7(a) availability​. Therefore, business owners must understand the available programs and how they interact to find the best relief for their business.