COVID19 Resources - Small Business Relief
Updated: Apr 10, 2020
We’ve made it quick and convenient for you to understand the resources available to you for COVID19.
A Breakdown of the CARES Act
MBA Growth partners provides you with breakdown of CARES Act (stimulus package) and other resources that your business can leverage in support of COVID19
Through the CARES Act, when you file your taxes, you may receive a bonus check based on your income. Individuals over 18 that make less than $75,000 will receive a bonus check of $1,200. For families, you will receive $500 for every additional child listed as a dependent. This means for a family of 4, they can expect to receive a check of $3,400. All loan interest payments are deferred through September 30, 2020, and the tax deadline has been extended to July 15, 2020.
The Act provides $350 billion to companies with fewer than 500 employees to let businesses continue to pay their employees through the closures. This means that when businesses file their taxes, they may receive benefits according to the number of employees they currently have. Portions of those loans that go to paychecks, rent, utility, or debt may be forgiven provided that employees stay in work through June.
For bigger businesses, when they file their taxes, there will be $500 billion set aside in loans, however, they will be expected to pay these loans back with some other requirements. For example, for the duration of the loan plus one year, companies will not be able to make stock buybacks.
EIDL (Economic Injury Disaster Loans)
EIDL’s can now be approved solely based on credit scores and any application for $200,000 or less can be approved without a personal guarantee. They are also now available to tribal groups, cooperatives, and ESOPs with fewer than 500 employees. Nonprofits of any size including 501(c)(6)s, sole proprietors and independent contractors can also apply.
Borrowers can get an emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increase costs due to disruptions to supply chain, mortgage or lease payments, or repaying debts that can’t be paid due to corona related revenue losses.
Business can apply and qualify for both the EIDL and the Paycheck Protection Program.
The Act includes a fully refundable tax credit for businesses that were caused distress by closures. The aim is to have companies either hire any employees that were laid off and/or to put their employees on paid furlough. Companies with greater than 100 employees can only use this benefit on closures due to the coronavirus, however, companies with less than 100 employees can use it whether or not they are closed.
For more info on the CAREs Act: https://www.sbc.senate.gov/public/_cache/files/2/9/29fc1ae7-879a-4de0-97d5-ab0a0cb558c8/1BC9E5AB74965E686FC6EBC019EC358F.the-small-business-owner-s-guide-to-the-cares-act-final-.pdf