• Raffi Garnighian

The Small Business Debt Relief Program Under the CARES Act

In response to the continuing spread of COVID-19, also known as Coronavirus, on March 27th the United States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Act includes the Small Business Debt Relief Program which offers liquidity to businesses concerned about keeping up with a current or potential Small Business Association (SBA) Loans. The relief is also available for new borrowers who take out covered SBA loans between March 27th, 2020 and September 27th, 2020.

New borrowers must still meet the requirements of the underlying SBA loan to qualify for debt relief. These requirements include the following:

The business must be for-profit;

  • The business must be for-profit;

  • The business must be physically located and operating in the U.S.;

  • The business owner must have invested their own time or money into the business;

  • The business must have exhausted all other sources of funding; and

  • The business must meet the SBA’s size requirements.

The SBA has stated that while hemp and hemp-derived product businesses are eligible for assistance, marijuana-related businesses are not. If you believe you qualify for debt relief, it is recommended that you apply for assistance. Applications and more information can be found here.

Raffi Garnighian is a published author and Colorado and New York licensed attorney at Wysocki Law Group, P.C. Kieran Edstrom is a third-year law student at the University of Denver Sturm College of Law and a law clerk for Wysocki Law Group, P.C.

© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

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