FDIC Highlights Relief for Small Businesses Provided under the CARES Act

The FDIC highlighted relief now available for small businesses under the Coronavirus Aid, Relief and Economic Security ("CARES") Act.

The FDIC reviewed the programs implemented under the Small Business Administration ("SBA") including:

• The Economic Injury Disaster Loan Program, which provides funds to small businesses under Section 7(b) of the Small Business Act to cover economic losses due to the COVID-19 pandemic; and
• The Paycheck Protection Program, which offers (i) loans to certain qualified small businesses to encourage the retention of employees during the pandemic, and (ii) loan forgiveness under certain conditions.

The FDIC advised that the SBA will be "streamlining its processes" to better facilitate use of these programs by small businesses. The FDIC also stated that it would begin posting updated information regarding SBA programs for financial institutions on its Coronavirus (COVID-19) webpage on April 3, 2020, and would not criticize "good faith efforts" of financial institutions "to use SBA and Treasury programs to work with small business borrowers affected by COVID-19."