Maximum CARES Loan Amount & Permitted Uses / Offsets

The maximum loan amount (capped at $10 million) is:
• 2.5 times average total monthly payroll costs incurred in the one-year period before the loan is made (or for seasonal employers the average monthly payroll costs for the 12 weeks beginning on February 15, 2019, or from March 1, 2019 to June 30, 2019);
• PLUS the outstanding amount of a loan made under the SBA’s Disaster Loan Program between January 31, 2020 and the date on which such loan may be refinanced as part of this new program;
The proceeds can be used for an expanded list of allowable expenses:
• Employee salaries, wages, and commissions
• Paid leave and severance
• Payroll support including health benefits and insurance premiums
• Retirement benefits
• State and local payroll taxes
• Mortgage, rent and utility payments
• Interest on other debt obligations incurred before February 15, 2020

Loan Forgiveness. Qualifying borrowers would be eligible for loan forgiveness equal to the amount spent during eight weeks after the origination date of the loan on the following types of costs:
• Payroll costs
• Interest payments on mortgages incurred before February 15, 2020
• Rent payments on any agreement in effect before February 15, 2020
• Utilities in place before February 15, 2020

The amount forgiven would be reduced to the extent employees have not been retained or the extent employee pay has been reduced by more than 25%, both of which are compared with the prior year.