Gill Capital Partners – CARES Act Update Part II
Business Provisions
As a follow up to the information we sent out on Monday, we wanted to offer up some of the best resources we have come across to help explain the many business-related provisions of the CARES Act. There are quite a few different pieces to the Act, the intent being to help employers through this unprecedented time and to keep as many employees working as possible. These programs are also available to nonprofit organizations and other named entities.
We recommend talking to us or other trusted resources before you act on any of the below.
There are many programs included in the CARES Act for businesses small and large. Below is a brief overview of the programs that are getting the most attention, but please reference the links below for full details:
Paycheck Protection Program (PPP) Loans – 100% federally guaranteed loans to small businesses that are affected by COVID-19 and maintain their payroll during this emergency. If payroll is maintained, up to 8 weeks of qualifying expenses will be forgiven. SBA Lender banks will start accepting applications on April 3rd.
Small Business Debt Relief Program – The Small Business Association (SBA) will cover all loan payments, including principal, interest and fees, for six months. This applies to existing loans and loans taken out within six months of the President signing the bill into law.
Economic Injury Disaster Loans (EIDL) & Emergency Economic Injury Grants – These grants provide an emergency advance of up to $10,000 to small businesses and nonprofits harmed by COVID-19 within three days of applying. The advance does not need to be repaid under any circumstance.
Small Business Tax Provisions –
Employee Retention Credit – Provides a refundable tax credit of 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis. Note: The credit is not available to employers receiving assistance through the PPP described above.
Delay of Payment of Employer Payroll Taxes – Allows small businesses to defer paying the employer portion of certain payroll taxes through the end of 2020, making them due in 2021 and 2022. Again, deferral is not provided to employers receiving assistance through the PPP described above.
We highly recommend you review the following links for more detailed information:
Small Business Owner's Guide to the CARES ACT
Company Retirement Plan Updates