Small business relief from the CARES Act

The Coronavirus Aid, Relief, and Economic Security (CARES) Act has appropriated more than $350 billion in funds for small businesses and the Paycheck Protection Program and Health Care Enhancement Act has appropriated an additional $310 billion for the Paycheck Protection Program (PPP), an additional $50 billion for the Economic Injury Disaster Loans (EIDLs) and an additional $10 billion for the EIDL grant program. We've outlined the two relief programs, both administered through the U.S. Small Business Administration (SBA).

This information is not intended as financial, accounting, legal, or tax advice. See Disclaimer. Readers should seek specific financial, accounting, legal, and/or tax advice from a qualified professional before acting with regard to the subjects mentioned herein.


Additional Highlights from the CARES Act


Businesses are getting a tax break

Certain business and income taxes are deferred. The ability to use certain tax benefits such as net operating losses (NOLs) and alternative minimum tax (ATM) credits has also been refined with an aim to provide near-term liquidity.


Plus, additional support for our communities

There are vastly expanded unemployment benefits, support for our healthcare system, and more.


Understanding the programs


August Update:  PPP loan applications are no longer being accepted (since August 8, 2020). SBA is still accepting new applications for EIDL.

While your circumstances may affect your loan eligibility, we hope this informational resource helps you better understand these programs and we encourage you to seek personalized advice from your lender or qualified professionals.

See below for general details about the two programs – for more details, see the Treasury’s FAQ and additional FAQ’s.

Option 1 - Economic Injury Disaster Loans ("EIDLs")

Get a $10,000 advance in 3 days or less


The Economic Injury Disaster Loan (EIDL) is an emergency program intended to offer small business loans up to $2M (with an interest of 3.75% and a repayment term up to 30 years) to cover ordinary and necessary business expenses during certain disasters and emergencies. It also included a grant up to $10,000 for eligible businesses but it is no longer available.

There have been reports, however, that the SBA has capped the maximum loan amount to $150K per applicant.

Option 2 - Paycheck Protection Program ("PPP")

Get up to 24 weeks of operating expenses back

The Paycheck Protection Program (PPP) offers approved business owners 100% federally guaranteed loans up to $10M (with an interest rate capped at 1.00% and a repayment term of 5 years) and forgives up to the amount spent (or incurred) on certain operating expenses (i.e., payroll costs (including compensation to furloughed employees, bonuses and hazard pay, in each case, up to $100K on an annualized basis), owner compensation replacement, rent obligations on real and personal property pursuant to agreements effective before 2/15/20, utilities for services that began before 2/15/20, and interests on mortgage obligations on real or personal property incurred before 2/15/20) (a) during the first 24 weeks after lender’s first disbursement of loan or, (b) alternatively, solely for borrower’s with payroll cycles that are bi-weekly or more frequent and with respect to payroll costs (but not with respect to non-payroll costs for which the covered period in the preceding (a) applies) spent (or incurred), during the 24-week period beginning on the first day of the first pay period following disbursement of the loan (so long as, with respect to incurred expenses, payment is made on the first payment date following the applicable 24-week period); provided, however, that (i) if the foregoing 24-week period extends beyond December 31, 2020, the applicable forgiveness period will be the period beginning on the date of first disbursement of loan and ending on December 31, 2020 and (ii) if the loan was made before June 5, 2020, borrower may elect to have the forgiveness period be the first 8 weeks after lender’s first disbursement of loan. 

At least 60% of the loan proceeds must be spent on payroll costs (inclusive of the amount of any refinanced EIDL) and the same threshold must be met in order to qualify for loan forgiveness. The loans can be deferred until the date on which the SBA remits the borrower’s loan forgiveness amount to the lender (with interest accruing during deferment), which can occur up to 90 days after forgiveness amounts are determined, or notifies the lender that no loan forgiveness is allowed. If a borrower fails to apply for loan forgiveness within 10 months after the last day of the applicable forgiveness period, the borrower must begin to make payments of principal, interest, and fees on its loan after such 10 month period.  The repayment term of any loans made before June 5, 2020 is 2 years but borrowers and lenders may mutually agree to extend it to 5 years.    






Tax Specific FAQs

Information relating to business tax provisions, social security tax deferral and employee retention credit considerations under the CARES Act can be accessed here.

Business Tax Provisions FAQs

Social Security Tax Deferral FAQs
(6/5/2020 Update: Borrowers are eligible for both the payroll tax deferral and PPP loan forgiveness – the CARES Act has been amended to remove the prior restrictions on benefiting from both.)

Employee Retention Credit FAQs | IRS Summary and FAQs


SBA Loan Guidance and Resources

Visit The Small Business Administration (SBA) for updated guidance on COVID-19 resources.

You can find your local SBA District Office for assistance and also search for a Small Business Development Center (SBDC) in your area. SBDCs are able to answer your questions, provide no-cost business consulting, and offer low-cost business training in partnership with the SBA. 

Additional SBA links:

View other Coronavirus relief options

View the most active SBA lenders and use the SBA’s lender match tool to find a lender.



Main Street Lending Program

The Federal Reserve has established a Main Street Lending Program (MSLP) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The MSLP will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).

Structure. Under the MSLP, eligible lenders will make loans to eligible borrowers (that is not forgivable), and the Federal Reserve will purchase a 95% participation in each loan from lenders (up to $600 billion in the aggregate). Loans issued under the MSLP will have a five-year maturity with an interest rate of LIBOR +3%, deferral of principal payments for two years, and deferral of interest payments for one year. The MSLP will be administered by the Federal Reserve Bank of Boston.

Eligibility. As detailed further in the term sheets, U.S. businesses established before March 13, 2020 may be eligible for loans if the business either: (1) has 15,000 employees or fewer; or (2) had 2019 revenues of $5 billion or less. (Certain restrictions may apply if a borrower has affiliates or outside investors.) Paycheck Protection Program borrowers are eligible for the MSLP as well.

Status. The MSLP has been launched as of June 15, 2020. Contact your bank/lender for details and advice (including whether your lender is participating, and about your eligibility and application process). Further details and forms can be found on the Federal Reserve Bank of Boston’s website.

Details. See a summary of and the term sheets for each facility and FAQs providing more information regarding eligibility and conditions.



Business Resources by State

See a list of state, local and private resources available to small businesses. This list will be continuously updated as new programs and information become available.

View Resources



Webinar: Financial Relief Opportunities for Small Businesses

Brookfield Properties and Covington hosted an informational call to help our tenants better understand the federal relief provided for small businesses pursuant to the CARES Act.

This call provides initial, specific information about how to potentially access these loan programs, the criteria for eligibility, and addresses other key questions.

Listen to Webinar Recording



If you have additional questions, please reach out to your Brookfield Properties contact.




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