CARES Act - Financial Assistance

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides relief to families, small businesses, and to individuals who are self-employed and independent contractors. Various relief programs may be available to real estate brokerages and agents.


Pandemic Unemployment Assistance

A key provision in the law creates a temporary "Pandemic Unemployment Assistance" program that extends unemployment benefits to those not traditionally eligible, including self-employed individuals.

The unemployment assistance may be available to individuals who are unemployed, partially unemployed, or unable to work for the weeks impacted as a result of COVID-19 between Jan. 27- Dec. 31, 2020.   

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Disaster Loans and the Payroll Protection Plan

The CARES Act dramatically increased the role of the Small Business Administration (SBA) in efforts to assist U.S. businesses impacted by the COVID-19 crisis. There were two main vehicles for these relief efforts – Economic Injury Disaster Loans – and the SBA 7(a) Payroll Protection Plan loan program.

See below for details of each program.


Emergency Economic Injury Loans & Grants

(May 11): No new applications are being accepted for Emergency Economic Injury Loans & Grants (EIDL). After funding for this program was made available during with the second round of funding approved April 27, the use of these SBA loans and grants are now for the sole purpose of Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries.


Payroll Protection Program - SBA 7(a)

The Paycheck Protection Program provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. Businesses with 500 employees or fewer, including sole proprietors and independent contractors, may be eligible for SBA 7(a) loans in response to COVID-19 covering expenses for the period of Feb. 15, 2020 through June 30, 2020. The CARES Act appropriates $349 billion to cover these loans.

(April 27): Additional funding for the PPP program was signed into law April 24 and the SBA will resume accepting Paycheck Protection Program applications from participating lenders on April 27, 2020. Apply though a participating SBA lender. Funds are expected to go fast.

(April 16); Notice on SBA website: “SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time." The notice also stated: “SBA is unable to maintain a queue for PPP applications.” KCRAR will monitor this situation if/when Congress appropriates additional funding for PPP.


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