The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) has been signed into law. A significant part of this legislation provides financial assistance to small businesses by means of the “Paycheck Protection Program.” This program will provide small businesses with loans which can be forgiven, in whole or part, based upon the borrower’s willingness and ability to maintain its pre-crisis level of employment. The program generally applies to businesses with 500 or fewer employees.
The maximum amount a company can borrow is the lesser or $10,000,000 or the amount determined based on a formula of approximately 2.5 times