The Small Business Owner’s Guide to the CARES Act

Just one week ago today, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. By now you’ve probably received and reviewed lots of information to determine the appropriate steps for clients.

The estimated $2 trillion package, includes nearly $377 billion specifically designed to assist small businesses in the form of extremely favorable and forgivable loans.

As businesses with fewer than 500 employees are likely eligible for the Paycheck Protection Program, the vast majority of insurance agencies and their clients may qualify for assistance.

An additional measure to help small businesses is the expansion of the Economic Injury Disaster Loans (EIDLs) offered through the Small Business Administration (SBA). These loans can go up to $2 million and with a 30-year term at 3.75% interest but are not forgivable. Companies can apply for both the Paycheck Protection Loan and the EIDLs as long as the funds do not cover the same expenses.

The Small Business Owner’s Guide to the CARES Act
To stay up to date on the implementation of these programs, please visit the following websites:

• Guide to the CARES Act – published by the U.S. Senate Committee on Small Business & Entrepreneurship, this guide provides a simple and consolidated view of the programs available.
• SBA – here you will find information on all COVID-19 related programs that SBA is providing, including the Paycheck Protection Program, Economic Injury Disaster Loans and Emergency Grants, and Small Business Debt Relief.
• Department of Treasury – here you will find information on the Paycheck Protection Program, as well as other tax provisions meant to help employers, including non-profits.

I wanted to make sure we got this valuable information in your hands so you can take your appropriate action quickly.

Source: RPS – Risk Placement Services