During these unprecedented times several loan and grant programs have been, or are in the process of being, implemented by various governmental agencies to support small businesses; the engine of employment and economic growth in the United States. We have provided a brief program summary of those programs. Note, in some instances the authorizing legislation, including requirements, is still being written, the legislation conditions were hastily written, and most are new programs which may require further future clarifications from the respective government agency charged with the administration of these loans. The CARES Act has not been signed into law yet and is still “fluid”. The summary below is what we expect the final provisions might be. We will provide an update once the legislation has been signed into law and a review of the final provisions can be made.

Federal Government:

Coronavirus Aid, Relief & Economic Security Act (CARES Act)

Status:  As of 3/27/20, passed by Senate, negotiated with President Trump’s administration, just passed by House of Representatives and then to be signed by the President later today

Purpose:  Providing emergency assistance and health care response for individuals, families, and businesses affected by the 2020 Coronavirus pandemic

Administered by:  Various federal and state agencies

Key provisions as of 3/27/20:

  • Small Businesses: $350 billion in aid
    • Paycheck Protection Program can provide up to 8 weeks of cash-flow assistance through federally guaranteed loans to small businesses who maintain payroll during this emergency
      • Loan size equal to 250 % of the employer’s average monthly payroll to a maximum of $10 million
      • Covered period is 2/15/20 through 6/30/20
      • Loan is forgivable if you spend funds on covered payroll costs including salary, wages, employee group health care benefits and retirement contributions
        • Remaining loan not forgiven will be paid monthly with a 6-month deferral over a 10-year term with 4% interest
        • There is no income tax liability on the portion of the loan which is forgiven
      • Program applicable to businesses with 500 or fewer employees
      • Loans to be made available immediately through more than 800 SBA-certified lenders
    • Employee Retention Credit for Eligible Employers
      • A refundable payroll tax credit for 50% of eligible compensation
      • Eligible Employers, including non-profits, whose operations have been suspended by government order limiting commerce or who have experienced a greater than 50% reduction in quarterly receipts measured on a year-over-year basis
      • Eligible compensation including health benefits for up to $10,000 per eligible employee, and excludes compensation required for employer credit for paid family and medical leave
      • This credit is not available to employers receiving Small Business Interruption Loans
    • The maximum loan amount for SBA Express loans for working capital to be increased from $350,000 to $1 million
    • In addition, the CARES Act allows the deferral of the employer’s 6.2% Social Security tax for up to 1 year to preserve cash flow if the business was forced to close, in full or part, for any quarter during the calendar year 2020. This is in addition to the loan forgiveness.
    • CARES Act requires SBA to enact these programs within 15 days following the Act being signed into law.
  • Individuals: $500 billion in aid
    • $1,200 for each adult, plus $500 for each child, income limited for individuals earning above $75,000 (and $150,000 per couple) through phase-out, then elimination
  • Social Safety nets: $250 billion in aid
    • An additional $600 in Federal Pandemic Unemployment Compensation to every weekly unemployment benefit through 7/31/20
    • An additional 13 weeks of federally funded state unemployment compensation for those who have exhausted their state unemployment benefits through 12/31/20
  • Loan facility to distressed industries: $500 billion in aid (Airlines, air cargo carriers, other)
  • Healthcare system: $130 billion in aid
  • State and Local Governments: $150 billion in aid; Education, $30 billion in aid; Transit funding, $25 billion in aid
  • Other:
    • IRA RMDs: Temporary waiver on RMDs for calendar year 2020; waives 10% penalty for early withdrawal of up to $100,000 from qualified retirement account if for coronavirus-related purposes

U.S. Small Business Administration (SBA) Loans:

CARES Act – See Above

SBA Disaster Assistance Loan (Economic Injury Disaster Loan – EIDL)

Status:  Enacted

 Purpose: Working capital to small businesses suffering economic injury as a result of COVID-19

 Administered by: U.S. Small Business Administration

Loan Terms:

  • Up to $2.0 million
  • Interest at 3.75% for small business; 2.75% for non-profits
  • Maturity up to 30 years
  • Collateral required for EIDL loans over $25,000
  • Cannot be used to refinance long-term debt


  • Declared Disaster area – see: https://disasterloan.sba.gov/ela/Declarations
  • All of Pennsylvania has been declared a Disaster area as a result of COVID-19 per PA Declaration 16360
  • Credit history acceptable to SBA
  • Ability to show ability to repay the loan
  • Filing deadline December 21, 2020

Additional Resources:


SBA Express Bridge Loans

 Status:  Enacted

 Purpose:  To allow small businesses who already have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork

 Administered: SBA

Loan Terms:

  • Up to $25,000


  • Urgent need; pre-existing SBA relationship

SBA Loans (Regular)

Status:  Enacted

Purpose:  To reduce the cost of lender loans to small businesses by having the SBA guarantee the loan for the benefit of the lending institution

Administered: SBA

Loan Terms:

  • Up to $5.5 million; based on size of business (# employees; revenues)


  • Most business purposes, including Operating Capital and Fixed Assets
  • For profit business, Physically and Operationally located in the US, Invested Equity, Exhausted Financing Options

Additional Resources


Families First Coronavirus Response Act (FFCRA)

Tax Credits to recover cost of providing Coronavirus-related Leave (required under FFCRA)

Status: Enacted 3/18/20

Purpose: Immediate and full reimbursement to small and mid-sized employers for the cost of providing Corona-related Leave to their employees

Administered by: IRS

Tax Credit Terms

  • Refundable payroll tax credits
  • Up to 80 hours of paid sick leave and additional paid Child Care Leave when childcare centers are closed or child care providers are unavailable
  • Includes health insurance
  • Self-employed individuals may receive an equivalent credit
  • Reimbursement dollar for dollar offset against payroll taxes; where refund is owed, IRS will send a refund check as quickly as possible
  • See program for per employee sick leave and Child Care Leave maximums


  • Employers with less than 500 employees
  • Employers with fewer than 50 employees are exempt from providing paid Child Care Leave if the viability of the business is negatively impacted as a result
  • For Leave provided through 12/31/20

Additional Resources:

Note:  This is the general funding source for the additional legislation requirements imposed on small businesses by the FFCRA, see below


Commonwealth of Pennsylvania:

COVID-19 Working Capital Access Program

Status:  Enacted

Purpose:  Provide critical working capital to PA small businesses

Administered by:  Pennsylvania Industrial Development Authority (PIDA) with loan applications made through the Certified Economic Development Organization (CEDO)

Loan Terms:

  • May be used for working capital, excluding fixed assets and production machinery and equipment
  • 3 years, with 12-year amortization
  • No payments for year 1, principal and interest (if applicable) due monthly in second and third years
  • Interest rate 0%, except for agricultural producers whose rate is 2%
  • Maximum loan amount $100,000


  • PA for-profit business (Inc., LLC, L.P., etc.)
  • 100 or fewer full-time employees at the time the application is submitted
  • Program limited to $60 million total borrowing – get applications in now if interested

Additional Resources


Montgomery County:

  • Gatekeeper for Commonwealth of Pennsylvania Working Capital Access Program, see above


Additional Items of Note

  • Federal Tax Filings/Payments – IRS Notice 2020-18 extends the due date for Federal Income Tax Returns and payments otherwise due April 15th to July 15th for individuals, estates, and C-type corporations. Partnerships and Sub S corporations (generally were due unless extension filed prior to March 16th).
  • Student Loan Payment Deferral – President Trump announced a deferral of student loan payments on Federally Administered Student Loans until further notice. Interest will not accrue during the deferral period.
  • Families First Coronavirus Response Act

Status:  Enacted 3/18/20

Applicable:  Employers with less than 500 employees

FFCRA requirements include:

  • Employer-covered cost of additional COVID-19 related employee sick time when child care centers are closed or child care providers are unavailable


If you have any questions about the items listed here or would like to discuss your specific circumstances, please do not hesitate to contact Doug Huntley, MBA, CPA (inactive) at 215-643-9100 or dhuntley@blbb.com. Doug is a graduate of The Wharton School of Business where he received an MBA with a focus on Finance and Strategic Planning. Doug is also magna cum laude, Bucknell University, where he received a BSBA in accounting.


BLBB does not provide tax advice nor practice law.  Please see your licensed tax or legal professional who is familiar with your particular facts and circumstances.


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