Coronavirus Aid Relief & Economic Security act (Cares)

April 06 2020

Categories: HR Solutions

Coronavirus Aid Relief & Economic Security act (Cares)

Coronavirus Aid Relief & Economic Security Act (CARES) 

Federal resources for small businesses have been made available through the CARES Act. The Paycheck Protection Program (PPP) is included in the act, and provides $350 billion of assistance to help keep employees on payroll and cover important business expenses through a forgivable loan program.

Other highlights of the act include:

  • Companies with under 500 employees can obtain loans of up to $10 million
    • loan size is based on business’s average monthly payroll for 2.5 months
    • any business assigned a NAICS code beginning with 72 (covering hotels, casino hotels, restaurants and bars) with not more than 500 employees per location are also eligible for the program
  • Loans can be used to cover payroll, employee benefits, mortgage, rent and utilities
  • The total amount spent on payroll costs, benefits, mortgage payments, rent and utilities between February 15 – June 30 is eligible to be forgiven from the loan
  • Self-employed individuals and independent contractors are eligible
  • The loans are guaranteed 100% by the Small Business Association (SBA)
  • Loans can be accessed through any FDIC bank, credit union or fintech lender

To assist in clearing up confusion, see below resources;  flow chart, analysis, factsheet and PPP application.  We recommend viewing them in order.

Contact your banker to get the process started.

1. Flow Chart – Overview of the CARES Act for Small Business

2. Coronavirus Aid, Relief & Economic Security (CARES) Act – Analysis

3. Paycheck Protection Program (PPP) Information Sheet: Borrowers

4. Paycheck Protection Program – Borrower Application Form

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