Banking and lending will feel impacts from the $2 trillion federal Coronavirus Aid, Relief and Economic Security (CARES) Act passed last week, most notably the new loan U.S. Small Business Administration loan program.

The $349 billion Paycheck Protection Program provides SBA 7(a) loans to small businesses affected by the coronavirus crisis. Business owners can take loans up to $10 million at rates no higher than 4 percent. Payments can be deferred for six months, and the loan term is up to 10 years.

Business owners can also receive forgiveness on a portion of the loan representing eight weeks of funds that went toward payroll, rent, mortgage interest and utilities.

Other provisions put into law for the duration of the coronavirus emergency certain guidance that bank regulators and federal agencies had already provided, including the option to delay implementation of current expected credit loss standards (CECL).

The CARES Act also confirmed that loan modifications during the crisis would not need to be classified as troubled debt restructuring for accounting purposes and would not be subject to criticism during regulatory exams.

For mortgages, borrowers can request forbearance on federally backed mortgages, including those backed by Fannie Mae, Freddie Mac, the Veterans Affairs and the Federal Housing Authority.

Another provision of the law reduces the Community Bank Leverage Ratio from 9 percent to 8 percent, allowing banks to be considered well-capitalized while continuing to lend to customers.