ESOP companies and other small businesses are eligible for dramatically expanded federal loans under a new law signed by the President late Friday afternoon.
Funds available through the Small Business Administration’s 7(a) loan program have been boosted from about $20 billion to roughly $369 billion, under the Coronavirus Aid, Relief, and Economic Security Act (or CARES Act). Loans cover the period from March 1 through December 31, 2020.
Loans used to retain and pay employees will be eligible for whole or partial forgiveness.
See the attached resources for both an overview of this exciting new financial assistance, and a more detailed analysis.