Businesses all over the country can now apply for financial assistance under the $2.2 trillion Coronavirus Aid, Relief & Economic Security (CARES) Act signed by President Trump on March 27. This unprecedented relief package offers help to individuals and businesses impacted by the COVID-19 pandemic. One of the provisions of the Act is the “Paycheck Protection Program,” which will be administered by the Small Business Administration (SBA) and offer forgivable loans for businesses with fewer than 500 employees to help them cover near-term operation expenses and encourage them to retain employees during this crisis. Businesses will apply for the loans through their banks.
Lenders should expect a high volume of application activity and customer interaction during this period, and ensure ample operational processes are in place to handle this influx. Here are some things financial institutions can do to better prepare themselves: