Of the $2 trillion distributed in the Coronavirus Aid, Relief, and Economic Security (CARES Act), $350 billion is dedicated to providing relief to small businesses, defined as having under 500 employees.
The $350 billion will be deployed through the Paycheck Protection Program, which allows small businesses to borrow up to 250% of their average monthly payroll expenses, up to a maximum loan amount of $10 million. The loans are intended to cover eight weeks of payroll expenses and additional payments toward debt, and will only cover employee compensation up to $100,000 per employee. Money from that loan paid toward payroll and existing interest payments on mortgages, rent payments, leases, and utility service agreements will be forgiven—i.e., will not need to be paid back (more information on the Paycheck Protection Program here). Small businesses can apply through most banks to receive a loan. The Senate is currently debating an additional $250 billion in support for the Paycheck Protection Program.
