Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act yesterday, March 27, 2020. The legislation provides about $2 trillion in economic stabilization and is nearly 900 pages long.
The following is a very high-level summary of a couple of the major provisions of the CARES Act that you will want to be aware of:
- Small Business Administration loans are available to be used for operational costs like payroll, rent, health benefits, utilities, etc. One option, “Paycheck Protection Program” will be funded through your local bank and backed by the SBA. The “Economic Injury Disaster Loan” is available directly from the SBA. These loans come with their own sets of rules and benefits. In certain circumstances, the loans can be forgiven. We are working hard to gather information pertinent to your business so that we can go over these options with you as soon as possible.
- For certain circumstances, “employee retention credits” may be available for wages that continue to be paid in spite of a downturn in business or a full or partial closure due to COVID-19. Again, we are working to gather information so that you will be able to make an informed decision on what option will work best for your business.
We encourage you to reach out to your banker to express interest in discussing the SBA loans available to small businesses. Before you meet with them, though, we’d like to set up a phone or virtual meeting with you to discuss your options, and then would be willing to join you when you talk to your banker if you’d prefer.
We are glad to be your trusted advisor during this uncertain and unprecedented time.
The Team at Rader & Rader
