The Coronavirus Aid, Relief and Economic Security Act
As of March 27th, 2020 the CARES Act was signed into law. Click on this link to view PayrollCentric’s April 2nd, 2020 web presentation covering the CARES Act. An audio recording is also available.
There are several items in the law created to help businesses and employees, including the Payroll Protection Program (PPP). The PPP offers businesses a loan up to 2 ½ times their average monthly payroll and can be used for the purposes of paying wages, rent/mortgage and utilities.
The small business assistance provided includes:
- $349 billion in forgivable loans to small businesses to pay and retain employees
- Available to most businesses with less than 500 employees*
- Includes non-profits and self-employed individuals
- Program is open from April 3, 2020 through June 30, 2020
- $17 billion in debt relief for current and new SBA borrowers
- SBA will pay the principal and interest for the next 6-months on SBA-backed loans
- Will help 320,000 small businesses and any new borrowers in the 7(a) or 504 programs
- $10 billion in immediate Emergency Economic Injury grants
- Up to $10,000 grant to applicants after self-certifying eligibility