As the COVID-19 pandemic deepens its hold across the country, governments and industry leaders are stepping up to help those impacted. To help you make sense of the barrage of information out there, we’ve put together a summary of helpful resources. We will be updating our COVID-19 Resources page regularly, so feel free to bookmark it.
The latest news – Federal Stimulus
On March 27, 2020 the CARES Act was signed into law. This wide-reaching stimulus package is aiming to help families and businesses impacted by the coronavirus. Here’s what’s in that package:
Stimulus payments for individuals and families
Every U.S resident with adjusted gross income under $75,000* who is not the dependent of another and who has a Social Security number that allows them to work will receive a payment of $1,200. Married couples filing jointly will receive $2,400. Families with children under the age of 17 can receive an additional $500 per child.
The exact amount of the payment depends on certain details.
Help for small businesses
The CARES Act has many helpful provisions for small businesses, which the Senate Committee on Small Business and Entrepreneurship details in this helpful guide. Here’s an overview of the most important provisions:
Loans for small businesses
The CARES Act also expanded eligibility requirements for disaster relief loans from the SBA to make it easier for small businesses to access the funds they need to stay afloat. There are some new provisions which we’ve detailed here.
Emergency cash grants of $10,000
Another resource available through the SBA is cash grants of up to $10,000. These do not have to be repaid if the funds are spent on paid leave, maintaining payroll, costs of supply chain disruption or repaying lease, mortgage or other debt.
Paycheck Protection Program
The SBA is also working with a network of 1,800 local lenders who will extend funds to businesses with fewer than 500 employees. A portion of the loan proceeds can be forgiven for certain reasons.
Debt relief for SBA loans
Business owners who take out non-disaster loans from the SBA can have all principal, interest and fees paid by the SBA for six months. This includes 7(a), 504 and microloans, and includes new loans taken out within six months of the date the law was signed.
Payroll tax credit for wages paid
Employers can receive a refundable payroll tax credit for 50% of wages paid to certain employees. This is available to employers whose operations have been fully or partially suspended as a result of a government order or to employers who have experienced more than a 50% decrease in quarterly receipts compared to the previous year. Eligibility criteria is detailed here.
Payroll tax payments may be deferred
Employer portions of Medicare and Social Security taxes for 2020 may be deferred. All deferred amounts are due in two installments, one at the end of 2021 and one at the end of 2021.
There are also some state and other financial support options for small businesses which we have researched and summarized for you here.
Please get in touch if you have any questions.
All the best