The “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136) signed into law on March 27, 2020—in addition to its numerous tax provisions—establishes two important lending programs:
Together, these two programs provide nearly $900 billion to support lending to small and large businesses and to nonprofit organizations.
The PPP is available to tax-exempt organizations described in section 501(c)(3) and veterans organizations described in section 501(c)(19) that have no more than 500 employees. In addition, under a program to be established by the Federal Reserve for medium-sized businesses, Treasury’s economic stabilization fund will be used to support low-interest loans for organizations with between 500 and 10,000 employees, including nonprofits. These programs are intended to support employee retention and compensation. Read a KPMG report that outlines the requirements for the PPP, the economic stabilization fund, and the interaction of these programs with the tax provisions of the CARES Act.
Applications to obtain a PPP loan may be filed beginning tomorrow, April 3, 2020.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Ruth Madrigal | +1 202 533 8817 | firstname.lastname@example.org
Preston Quesenberry | +1 202 533 3985 | email@example.com
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