With the impact of the Coronavirus crisis affecting people all over the country, the IRS and the Treasury Department have said that payments promised to Americans will begin being distributed in the next three weeks, providing a lifeline to those whose financial lives have been impacted by the pandemic. This Washington Post article provides a specific timeline for when individuals can expect to receive their payment. For most people, the distribution will be automatic and there will be no action required of them.
CARES Act to Permit Business Loans To Cover Payroll, Rent, Utilities, and more while Expanding and Increasing Unemployment Benefits
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Loans and grants to small businesses including sole proprietors and independent contractors in the CARES Act are on a first come, first served, basis. Once loans have been approved up to the appropriated amount, the program ends (unless Congress appropriates more funds).
If you and your small business need help with covering payroll, rent, and utilities — PLEASE DO NOT DELAY in applying for this program or in contacting us for help!
Businesses struggling with the economic impact of the COVID-19 pandemic crisis received good news late last night when the Senate passed an unprecedented piece of legislation aimed at providing a massive stimulus to workplaces and employees alike.
Any reduction in the amount of loan forgiveness will be completely avoided if the employer re-hires all employees laid off (going back to February 15, 2020), or increased their previously reduced wages, no later than June 20, 2020. These provisions are designed to provide an incentive to employers to not lay off workers (or rehire them) and instead utilize the loan amounts to pay payroll and other expenses.
What’s the Process?
Paycheck protection loans are fully guaranteed by the federal government through December 31, 2020 (previously guaranteed at 85%). The standard fees under section 7 of the Small Business Act are waived and there is no requirement that the loans be personally guaranteed by the borrower. Loans will be available immediately through SBA-certified lenders, which include banks, credit unions, and other financial institutions. The SBA will also be required to streamline the process to include additional lenders into the program and to ensure that funds are dispersed to qualified businesses as soon as possible. The deadline to apply for paycheck protection loans is June 30, 2020.
The most significant provision of the CARES Act for employers establishes new “paycheck protection” loans administered by the Small Business Administration (SBA) to help employers continue to cover payroll costs and other expenses during the COVID-19 crisis. The covered period for loans is February 15, 2020 through June 30, 2020.