Economic Relief to Tribes and Tribal Small Businesses Under the CARES Act

This alert provides a summary of certain economic relief that tribes and tribal small businesses may be eligible to receive under the recently enacted CARES Act. Please note that the relief listed in this alert may not be available in every instance, and that the information herein is subject to the fluid situation of the coronavirus pandemic and the updated regulatory guidance that agencies release daily.

SBA - Paycheck Protection Program—Loan With Forgiveness

• What is the Paycheck Protection Program?
  • The Paycheck Protection Program (PPP) provides cash-flow assistance through 100% federally guaranteed loans to employers, including qualified tribal businesses, who maintain their payroll during the Coronavirus Disease 2019 (COVID-19) emergency. Generally, if employers retain their employees in payroll and use PPP funds for authorized purposes, including employee compensation, all or most of the PPP loans may be forgiven. Each eligible entity is limited to one PPP loan.

  SBA - Emergency Economic Injury Disaster Loans

  • Whatis the Economic Injury Disaster Loan Program?
    • SBA’s Economic Injury Disaster Loans (EIDLs) offer up to $2 million in loans for small businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can't be paid because of the disaster's impact.
    • These loans are more flexible and can cover more than the PPP forgivable loans.

    Treasury - Tribal Economic Stabilization Fund

    • What is the Economic Stabilization Fund?
      • The relief fund provides $150 billion to states, tribal governments, and units of local government for necessary expenditures incurred in responding to the COVID-19 outbreak.
      • $8 billion is specifically set aside for making payments to tribal governments and tribally-owned entities.

      Government Contractors – Paid Leave

      • What is this program?
        • Subject to appropriations, the stimulus package includes a provision that provides paid leave for employees working on contracts with the federal government. The measure allows agencies to modify the terms of a contract to reimburse contractors for the cost of providing paid leave, including sick leave, to employees or subcontractors unable to perform work onsite due to a facility closure and who cannot telework.

        Other Potential Economic Relief to Tribes and Tribal Businesses

        • U.S. Department of Treasury's Loans and Guarantee Loans - Emergency Relief and Taxpayer Protections: Tribes and tribal businesses may be eligible for the $454 billion loan guarantee fund.

        
        
        • IHS: Provides $1.032 billion to IHS, to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, including for: (a) public health support; (b) electronic health record modernization; (c) telehealth and other information technology upgrades; and (d) purchased/referred care, the catastrophic health emergency fund, urban Indian organizations, tribal epidemiology centers, community health representatives, and other activities to protect the safety of patients and staff.
          • $65 million is allocated to electronic health record stabilization and support.
          • $450 million is allocated for distribution directly to IHS directly operated programs, tribes operating Indian Self-Determination and Education Assistance Act programs, and through contracts or grants with urban Indian organizations.
          • $125 million is allocated to the IHS facilities account.
          • The CARES Act also includes a $125 million set-aside for public health through the Centers for Disease Control and Prevention (CDC); a minimum of $15 million is set aside for mental and behavioral health services through the Substance Abuse and Mental Health Services Administration (SAMHSA); and a minimum of $15 million is set aside for health surveillance through the Health Resources and Services Administration (HRSA). The Special Diabetes Program for Indians is also funded through November 30, 2020.

          For more details on programs available through federal financial regulatory agencies to businesses of all sizes, please see the GT Alert “COVID-19 Federal Legislative and Regulatory Economic Stabilization Programs – What Your Business Needs to Know.”