Guide to the CARES Act For Small Business

The white house approved the rollout plan for the CARES Act today. Effective tomorrow business owners can go to any bank and take out the Pay Check Protection Plan.

The U.S. Senate Committee approved the CARES Act to provide Coronavirus Aid, Relief and Economic security to help those of us in need. The intent is to help small business owners get through immediate needs i.e. payroll, working capital, etc.

Here are the main questions the final approval will answer:

·      Do you need capital to cover employee retention?

·      Do you need emergency cash help?

·      Do you need debt relief help?

·      Do you need counseling to get through these economic times?

In addition, all business owners can take a $5,000 per employee tax credit from the taxes owed. We are not a Tax firm, please check with your CPA or Tax advisor.

Here is a link to the Small Business Administration website: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

If you are a borrower, here is the link for the Paycheck Protection Program:

https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf

There are 3 ways the white house is helping the economy back into gear. Here they are:

1.    Small business

2.    Direct deposit

3.    Enhanced unemployment benefits

In summary, this action and two week time frame provided by the White House will help minimize the economic impact our economy has had due to COVID-19. We will be having wine or Margaritas at our favorite restaurants in no time. Cheers!

Sources:

“Guide to the CARES Act.” Guide to the CARES Act - U.S. Committee on Small Business & Entrepreneurship, www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act.