On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The $2 trillion dollar stimulus is aimed at providing much-needed relief to the American people and businesses in response to the economic crisis as a result of the coronavirus (COVID-19) outbreak. The relief bill contains provisions that provide immediate cash flow to individuals and businesses.
The provisions for individuals include direct stimulus payments, special rules for use of retirement funds, waiver of required minimum distributions (RMDs), expanded unemployment benefits, student loan changes and modifications to charitable contribution deductions.
The CARES Act provides modifications to taxes and tax policies designed to distribute capital quickly and broadly to businesses. The Paycheck Protection Program is one of the largest and most important provisions of the CARES Act for businesses. Congress intended this program to assist small businesses during this time of uncertainty to encourage employers to retain their employees, and help small businesses cover near-term operating expenses.
The SBA was given until April 11th to provide the banks with the process to do the loans. The banks are currently being told not to expect any formal process until later this week at the earliest. Please review the memos below outlining these and other provisions of the CARES Act. Please let us know if you need assistance in calculating the maximum loan amount available to your business under the Paycheck Protection Program.
Stay healthy and safe!
Meese Khan, LLP
Phone: 623 935 1005