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Compliance with the new COVID-19 business assistance loans

By Gabriel L. Imperato, Esq., and Romain Balard, Esq.

Gabriel L. Imperato ( is the Office Managing Partner of the Nelson Mullins Fort Lauderdale office and is a Board-Certified Health Lawyer by the Florida Bar, and Romain Balard ( is an associate of the Nelson Mullins Fort Lauderdale office. He advises clients on a range of healthcare transactional, compliance, and regulatory matters.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted March 27, 2020,[1] provides some financial help to businesses across the United States. For small businesses (generally enterprises with 500 or fewer employees), the CARES Act provides loans that may be forgiven under the Paycheck Protection Program and emergency loans on generous terms under the Small Business Administration’s (SBA) Economic Injury Disaster Loan program.[2] For mid-sized businesses, “Title IV allocates up to $454 billion (plus any unused funds of the additional $46 billion currently allocated to airlines and national security businesses), for loans and loan guarantees to, and other investments in, programs or facilities established by the Federal Reserve Board to provide liquidity to the financial system and support lending to eligible businesses, states and municipalities.”[3] The Federal Reserve has not yet announced the details of the loan programs and/or credit facilities it will create to facilitate this lending; however, the CARES Act does provide the framework for the creation of a direct loan program targeted specifically at eligible businesses and nonprofit organizations with a number of employees between 500 and 10,000, which are considered mid-sized businesses under the CARES Act. Additionally, the CARES Act provides financial relief to healthcare providers through different programs: the Medicare accelerated payments program and the provider relief fund. On April 24, 2020, the president signed into law the Paycheck Protection Program and Health Care Enhancement Act (PPPHCEA) to amend the CARES Act and increase the funding.[4]

The information regarding the programs described below is current as of April 27, 2020.

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