Coronavirus Aid, Relief, and Economic Security (CARES) Act
Amid countless COVID-19 executive orders from elected officials across the country, it can be difficult to stay informed of congressional action, some of which may impact your business and/or employees. In our continued effort to support and serve, you should be aware of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law by President Trump today.
Although the CARES Act was just signed into law today, we understand that during this unprecedented environment, time is of the essence. Below is an initial overview of the two key provisions in the CARES Act that will likely present the greatest opportunity for you and your employees.
Title I - Keeping American Workers Paid and Employed Act
- $350 billion in loan forgiveness grants to small businesses to maintain existing workforce and help pay other expenses like rent, mortgage and utilities
- $10 billion for SBA emergency grants up to $10,000 to provide immediate relief for small business operation costs
Title II – Assistance for American Workers, Families and Businesses
- Unemployment Insurance
- $600 increase for every American
- Federal incentives for states to eliminate waiting weeks
- An additional 13 weeks of federally funded unemployment insurance benefits are immediately made available
- Allowance of part-time, self-employed and gig economy workers to access unemployment insurance benefits
- Direct Payments to Working Americans
- $1,200 one-time cash payments to every adult, an additional $500 for every child
- The full payment is available for individuals making up to $75,000 (individual), $150,000 (married), $125,000 (head-of-household)
- Employee Retention Credit for Employers Subject to Closure Due to COVID-19
- Refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis. The credit is available to employers whose:
- Operations were fully or partially suspended, due to a COVID-19 shutdown order, or;
- Gross receipts declined by more than 50 percent when compared to the same quarter in the prior year.
- Refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis. The credit is available to employers whose:
For additional information and how to apply for COVID-19 relief opportunities you should visit your state government website, as well as the Small Business Administration (SBA) website.
With any new law, the application and impact on individual businesses can vary, so we encourage you to review the CARES Act in its entirety to determine how it may impact your business and valued employees. As we stand together navigating these uncertain times, we are committed to keeping you informed.