Articles & E-Books


CARES ACT: Assistance for mid-sized businesses

Apr 07, 2020

The Coronavirus Aid, Relief, and. Economic Security Act (CARES) Act allows the Treasury to implement a lending program to help nonprofits and mid-sized businesses.

The Act directs banks or lending institutions to provide "direct loans" to provide liquidity and stabilizations to mid-sized businesses including nonprofit organizations  with the interest rate on the loans to not exceed 2 percent annually.

For the first 6 months, no principal or interest payments will be due on the loans.

To be eligible, businesses, including nonprofit organizations, with between 500-10,000 employees shall make a good-faith certification to the following:

  1. The loan is necessary to support the ongoing operations due to the economic uncertainty related to the COVID-19 public health emergency
  2. The funds received must be applied to retain at least 90 percent of the recipient's current workforce (including full compensation and benefits) through at least September 30, 2020
  3. The recipient will commit to reinstating no less than 90 percent of their workforce that was employed as of February 1, 2020 (including full compensation and benefits) no later than four (4) months after the termination of the COVID-19 public health emergency
  4. The recipient is domiciled in the U.S. and has significant operations and employees located within the US
  5. The recipient is not a debtor in a bankruptcy proceeding
  6. The recipient was created or organized in the US or under the laws of the US, and has significant operations and a majority of its employees in the US
  7. The recipient will not pay any dividends or repurchase any common stock while the loan is outstanding
  8. The recipient agrees that it will not outsource or offshore jobs for the duration of the loan and for at least two (2) years after the loan is repaid
  9. The recipient will not abrogate existing collective bargaining agreements for the duration of the loan and for at least two (2) years after the loan is repaid
  10. The recipient will remain neutral in any union organizing effort for the term of the loan

The CARES Act does not impose any deadline to provide guidance or procedures for the application of the lending program.


Denes Tobie, CPA
View Profile

Need help now?

Navigate the impact of COVID-19.


Fill out the form below and a member of our team will get in touch with you.

COVID-19 resource center | Wipfli