On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") into law. The SBA Paycheck Protection Program ("PPP"), which was created by the CARES Act, has provided short-term funding to over 4 million businesses to assist in sustaining their operations and avoiding employee layoffs during the government mandated shelter-in-place orders that swept across the nation. Within twelve days, $350 billion in CARES Act funding through the PPP was exhausted. On April 27, 2020, Congress allocated an additional $320 billion towards the PPP. Despite these available funds, small business recovery remains severely adversely affected by the shutdowns.
On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act of 2020 ("PPPFA") into law – implementing new rules for the forgiveness of loans through the PPP. Notably, the PPPFA will provide small business borrowers additional time to qualify for loan forgiveness, and it eases the restrictions on how much of the forgivable portion of the loan proceeds must be used for payroll costs.