CARES Act for Coronavirus Relief
Earlier today, Congress approved the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which is designed to provide comprehensive relief to individuals and businesses following the unprecedented impact of COVID-19 on our communities. The Act includes approximately $2 Trillion in assistance, and comes as welcome news to many - news that may save their business or help them regain personal financial stability.
We're learning all the details in an effort to be ready to support you in this time of need. As a SBA Preferred Lender we're well positioned to do so. Here's what we know so far:
- Establishes a payroll protection program (PPP) which provides for 100% guaranteed loans to cover specific operating costs. $349bn allocated to cover payroll costs, interest on mortgage payments, rent, and utilities from an expanded Small Business Administration (SBA) loan program with a 100% government guarantee through December 31, 2020.
- A portion of any loan issued as a part of PPP, up to or equal to eight weeks of covered expenses, will be forgiven by SBA, plus interest; some additional limitations apply.
- Authorizes $17 billion for small businesses for relief of existing SBA 7a loans and $10 billion for emergency grants for operating costs
- $454bn for a new Treasury facility designed to provide liquidity to certain businesses, states and municipalities. The program will include direct loans and loan guarantees to affected eligible companies (which the Fed can leverage further).
- Includes at least $25bn for air carriers, $4bn in loans and $4bn in grants for cargo carriers, and an additional $17bn set aside for businesses critical to National Security
- More than $339bn in financial support, including $100bn for hospitals and $150bn for state and local assistance
- Most individual taxpayers will be entitled to a $1,200 ($2,400 married) income tax rebate plus an additional $500 per child (income eligibility requirements apply)
- Business tax relief including delayed employer payroll tax obligations, an expanded window for carryback of net operating losses
- Provides the SBA Administrator up to 30 days to issue guidance and regulations needed to implement this Act.
We're working diligently to track and review these programs. In the coming days, we look forward to offering our assistance to help navigate your banking needs.
About Umpqua Bank
Umpqua Bank, headquartered in Roseburg, Oregon, is a subsidiary of Umpqua Holdings Corporation, and has locations across Idaho, Washington, Oregon, California and Nevada. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the twelfth consecutive year. In addition to its retail banking presence, Umpqua Bank owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to small businesses.
Umpqua Holdings also owns a retail brokerage subsidiary, Umpqua Investments, Inc., which offers services through Umpqua Bank stores and in dedicated offices throughout Idaho, Washington, Oregon, California and Nevada. Umpqua's Wealth Management Division serves high net worth individuals and nonprofits by providing customized financial solutions and offerings. Umpqua Holdings Corporation is headquartered in Portland, Oregon. For more information, visit https://www.umpquabank.com/newsroom.