The programs and initiatives in the Coronavirus Aid, Relief and Economic Security (CARES) Act that was just passed by Congress, are intended to assist business owners with whatever needs they have right now. When implemented, there will be several different options to assist business owners, including non-profit and other employers. To keep up to date on when these programs become available, keep in touch with your local SBA district office. See attached brief for full details and information for Employers.
There are 3 main components to this new act:
Paycheck Protection Program
To help small businesses (those with fewer than 500 employees) impacted by the pandemic and economic downturn, $350 billion has been allocated by the Federal Government to allow companies to make payroll and cover costs incurred between February 15 and June 30. Additionally, small businesses can take loans up to $10 million through December 31, 2020 and cover employees making up to $100,000 per year. If a business uses the loan for payroll, mortgage interest payments, rent, and utilities, portions of the loan may be forgiven. Companies that have laid off or furloughed employees may qualify for loan forgiveness if those employees are rehired by early June, 2020. Read more details read ourApplying for Funds Post
Payroll Tax Credit
A 50% refundable payroll tax credit on wages paid up to $10,000 can be claimed by employers during the COVID-19 crisis. Employers whose businesses were disrupted due to pandemic shutdowns, and those that showed a decline of 50 percent or more in gross receipts (compared to the same quarter last year), qualify to claim the credit. The credit can be also claimed for all employee wages for companies with 100 or fewer employees, and for employees who are retained but not currently working due to the crisis for businesses with more than 100 employees.
Expanded Unemployment Insurance
The new UI provisions allow for an additional payment of $600 each week to all qualified recipients through the end of July 2020. Benefits have been extended to self-employed workers, independent contractors, those with limited work history, and those unable to work due to the corona virus pandemic. Additionally, the first week of regular unemployment will now be immediate with no waiting period. UI benefits will be extended for an additional 13 weeks through December 31, 2020 after State UI benefits end.