Andreas Skutle
CARES Act Key Points for Businesses

Over the past few weeks, we've been doing extensive research into all the financial support that's currently being offered to businesses by the US government. A lot of measures have been taken, but these have been changing on a daily basis, sometimes even faster. It seems like things are finally starting to stabilize, although we still see changes here and there.
There is an UNPRECEDENTED amount of financial support being made available to US businesses throughout this COVID-19 pandemic, and we are committed to helping as many as possible keep their businesses and employees through it all.
The CARES Act
The CARES (the Coronavirus Aid, Relief, and Economic Security) Act was passed unanimously by the Senate, passed by the House and signed into law on 3/27/20. This is a sweeping $2 Trillion legislation that will impact the lives of many Americans. We do not have all the details of the final law yet, but we would like to provide you with a summary of key aspects of this bill that could impact your business and your employees.
Paycheck Protection Program (PPP) SBA 7(a) Loan
Up to $10 million FORGIVABLE loan (Must be used for specific causes)
Must have been in business on 3/1/2020
Must have fewer than 500 employees
Zero collateral needed
SBA 7(b) Economic Injury Disaster Loan (EIDL)
Up to $2 million loan
3.75% interest rate
Up to 30-year payback terms
Up to 1 year payment deferral
Up to $10,000 advance grant which is paid within 3 days of being assigned a loan officer. If you are denied for the 7(b) loan, this grant does NOT have to be repaid.
Eligibility based on personal credit score
Don't pay penalties for taking out your retirement funds
This waives the 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts.
Must be COVID-19 related distributions
Defer Your Payroll Taxes For 2 Years
You can defer payment of all payroll taxes over 2 years. 2020 payroll taxes paid 50% by the end of 2021 and 50% by the end of 2022.
Get Rebate Of $2,400 (Married) or $1,200 (Individual)
If you made less than 198,000 as Married, 146,000 as head of household or 99,000 as Single in 2019, file your return immediately. If you made less than that in 2018 and haven’t filed 2019, you will get the rebate sent directly to your account.
If You’ve Had Losses In ‘18, ‘19 ‘20, Amend Your Return For Cash
You can amend your tax returns from 2018, 2019, 2020 and get a refund instead of a carry-forward going back up to 5 years.
Refundable Payroll Tax Credit For 50% Of Wages Paid
You can get a Payroll Tax Credit 50% of wages paid to employees if your operations were partially or fully suspended or gross sales declined by more than 50% when compared to the same quarter in the prior year.
Credit is provided up to $10,000 per employee.
This is just a small part of the CARES act, but it is what's currently most relevant to American business owners and employees. For more in-depth details about each of these measures and how you can take advantage of them, request a COVID-19 consultation call with us here!