Business Aid and Loans: COVID-19

There is much confusion regarding the loans and aid available to companies.  In general, there are three primary options for middle market businesses:

1) SBA Economic Injury Disaster Loan Assistance (EIDL) – SBA program that existed before COVID-19 that offers up to $2 million in loans for eligible businesses.

2) Paycheck Protection Program – Created through the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act), the Paycheck Protection Program expands SBA support for businesses with loans of up to $10 million.

Borrowers are precluded from receiving SBA funding under the Paycheck Protection Program and an Economic Injury Disaster Loan (EIDL) for the same purpose (i.e., double dipping).

3) Emergency Relief Funding: Midsize Businesses – The CARES Act authorizes a relief program for losses incurred as a result of coronavirus, an amount not to exceed $500 billion, for the Treasury to make loans, loan guarantees and other investments in support of eligible businesses, states and municipalities. This includes special assistance for eligible mid-size businesses (500 to 10,000 employees). We expect guidance on this program to be published in the near future.

These three options are further described in this helpful overview provided by RSM US.

Please contact our COVID-19 Fast Response Team for any questions you may have at 
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