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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. The administration has released initial guidelines; they are available at The U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals check eligibility and prepare to file for a loan.

The administration has released initial guidelines; they are available at The U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals check eligibility and prepare to file for a loan.

Small businesses and sole proprietors can begin applying on April 3. Independent contractors and self-employed individuals can apply beginning on April 10.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating.While the program is open until June 30, 2020, the government is advising borrowers to apply as soon as possible given the loan cap on the program.

Please download your full guide tothe CARES Act here:

Our Chamber members Dime Community Bank (Steve Korman; 718-782-6200 ext. 5917); The First National Bank of Long Island (Linda Rowse; 516-795-0100) and Sterling National Bank (Lydia Edu-Daly 516-799-5500 ) are participating in the SBA Cares Act which includes the Payroll Protection Program. If any Chamber members have been impacted by COVID-19 and need assistance, please reach out to these local banks for details and resources.

Application for PPP Loan Forgiveness

The U.S. Small Business Administration in consultation with the U.S. Department of the Treasury has released the Paycheck Protection Program Loan Forgiveness application. The form and instructions inform borrowers on how to apply for forgiveness of their PPP loans consistent with the CARES Act. For the application and details, please visit

Preparing Documentation for PPP Forgiveness

Borrowers need to consider taking steps now to help them document their request for forgiveness. For the best chance at the maximum amount of loan forgiveness, you should:

  • Create a separate bank account to deposit and disburse the PPP loan proceeds. Your lender may even be able to open a new account for you with them just for the PPP loan, allowing for easier tracking. Make sure that you move funds out of this account directly to your payment account, and in the exact amounts to be paid.
  • Consider a separate code for costs incurred during the forgiveness period, and monitor spending throughout the period to ensure that at least 75% of the PPP loan proceeds are spent on payroll costs.
  • Maintain records for all potentially forgivable payments, including all federal and state taxes paid with payroll, mortgage interest, rent, and utilities.
  • Keep good records of employees offered to be re-hired, as well as those actually hired back, along with their position and pay rate.
  • Understand that you may need to run an off-cycle payroll on the last business day of the eight-week period to capture all eligible payroll expenditures. ​
  • Begin to speak with your lender about the forgiveness process and inquire as to when they expect to have their process and documentation requirements available.​

Make sure you continue to communicate with your advisor about the latest PPP developments. Given that the SBA has recently announced enhanced scrutiny of PPP submissions, it is more important than ever to make sure you are best positioned for a successful loan forgiveness application. (Information Provided by Chris Klampfer, MSA, AWMA®, CRPC®, Business Development Director, Kuttin Wealth Management)

SBA and Treasury Department Announce $10 Billion for CDFIs to Participate in the Paycheck Protection Program

The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, announced that it is setting aside $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) to be lent exclusively by Community Development Financial Institutions (CDFIs). CDFIs work to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses. These dedicated funds will further ensure that the PPP reaches all communities in need of relief during the COVID-19 pandemic – a key priority for President Trump.