Federal CARES Act includes support for small businesses
On March 27, the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act provides financial supports and resources to help small businesses looking for help during the COVID-19 pandemic, including:
Paycheck Protection Program (PPP) Loans
Federal guaranteed loans to provide employers capital to cover the cost of retaining employees for up to eight weeks of payroll. If employers maintain their payroll, the loans will be forgiven.
Small Business Debt Relief Program
Federal payment of all principal, interest, and fees on all existing small business loans for six months.
Economic Injury Disaster Loans and Emergency Economic Injury Grants
Provides small businesses emergency advances of up to $10,000 for business-related expenses within three days of application. The advance does not need to be repaid under any circumstance.
Small Business Counseling
Local Small Business Development Centers, Women’s Business Centers, and SCORE mentorship all provide free and low-cost trainings. These business counselors will help guide owners through this uncertain time.
Small Business Contracting
Government contractors can be reimbursed up to 40 hours per week.
Small Business Tax Provisions
Provides a refundable payroll tax credit for 50 percent of wages. Additionally, taxpayers can defer paying the employer portion of certain payroll taxes through the end of 2020, to be paid across 2021 and 2022.
The U.S. Senate Committee on Small Business & Entrepreneurship published a more in-depth description of these CARES Act programs that be found here.