Tag Archives: Cares Act

CARES Act Programs

Apr 01
business

This post is relevant for ALL business owners who have been impacted by COVID-19.  The CARES Act includes a special loan program, Paycheck Protection Program (PPP), to help facilitate short-term cash flow needs.

Below is a high level summary of PPP. Attached is a more detailed guide and checklist put together by U.S. Chamber of Commerce.

1.)      You can borrow up to 2.5x your average monthly payroll expenses, including employer paid benefits (i.e. paid leave, retirement benefits, health benefits)

2.)      The loan are eligible to be forgiven, in full or in part, if, within the 8 week period from the start of the loan, you retain 100% of your employees and you used the loan for wages, interest on mortgage, rent and utilities.  

There are other loan programs available, but PPP is the only one in which the loan can be 100% forgiven.

I encourage you to contact your bank immediately to explore various loan options available. Please stay tuned for additional updates and stay healthy!

CARES Act Passes

Mar 27

I hope you and your family are staying healthy!

We have great news.  The CARES Act just passed the House of Representatives this afternoon.  The President indicated that he will sign it and it will become law.

The law contains a lot of benefits – $2 Trillion.  The Paycheck Protection Program may directly help you cover the costs of your employee’s payroll and health insurance for up to 8 weeks!

The program gives loans to small businesses that may be forgiven.  The US Chamber of Commerce has a great summary of this program indicating:

“Yes, small businesses that take out these loans can get some or all of their loans forgiven. Generally speaking, as long as employers continue paying employees at normal levels during the eight weeks following the origination of the loan, then the amount they spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined and that portion of the loan will be forgiven.”

Click on the link below for the full summary:

https://www.uschamber.com/co/start/strategy/cares-act-small-business-guide

Families First Coronavirus Response Act FFCRA Update:

The Department of Labor released much needed guidance that addresses many of the questions we have been receiving.  Please click on the following link to view the Questions and Answers: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions


I highly recommend you read the document.  Of note; the document indicates that  that the sick and FMLA leave starts April 1 (Q1), is not retroactive(Q13), and does not apply to employees who are not at work because their workplace is closed (Q23).  It appears that the CARES Act will offer the most help to small businesses and employees who are shut down due to the Stay at Home order.

Tuesday Morning Webinar:

Every Tuesday morning at 8am, our Law Firm Maynard Cooper is hosting webinars with updated on the latest COVID laws and news.  If you can not make the live webinar, I will send out the recording later that day.  To sign up for the webinar, go to: https://cc.readytalk.com/registration/#/?meeting=n90lvz6pn7b0&campaign=172n2warnie5 I hope you have a great weekend.  Please stay tuned for additional updates and stay healthy!