CARES Act

It's here... well almost here, Congress has passed pandemic economic relief bill

Just before midnight last night Congress overwhelmingly passed legislation – the Consolidated Appropriations Act, 2021 – to both fund the continued regular running of the federal government and to provide additional economic help to both individuals and businesses affected by the current pandemic (https://docs.house.gov/billsthisweek/20201221/BILLS-116HR133SA-RCP-116-68.pdf). While the legislation has not been signed into law at the time of this writing, it is expected that the President will sign the Act.

The Act provides for a new round of Paycheck Protection Program (PPP) funding, makes Sec. 501(c)(6) not-for-profit organizations (Chambers of Commerce, trade associations, etc.) eligible for loans for the first time, offers businesses facing severe revenue reductions the opportunity to apply for a second loan and gives expanded PPP assistance to many hospitality businesses including hotels and restaurants.

Economic relief from Congress may be close, here are the details

At long last Congress appears to be nearing legislation that has a chance of passing and becoming law. The Emergency Coronavirus Relief Act of 2020 has a lot of parts to it — many of them moving parts. Of particular interest to most taxpayers and business owners is that of economic stimulus payments and another possible round for forgivable loans for businesses (Paycheck Protection Program round 2 or PPP2).

With the current political turmoil that exists, providing any odds for passage is impossible. However, in the meantime while we await passage we have prepared a recap of the Act for your reading pleasure or use as a sleeping aide. You can read our summary of the Emergency Coronavirus Relief Act of 2020 by clicking here.

New Positive Change for the Paycheck Protection Program!

Don’t be shocked now, the Paycheck Protection Program has changed… Again!

Following the rules, regulations and processes for the Paycheck Protection Program (PPP), Congress’ lifeline of working capital for small businesses, has been akin to trying to follow a superball bouncing in a small room. At least this most recent change is a positive one.

Paycheck Protection Program loan guidelines have a few surprises

Today, the day before banks (at least precious few banks based on what we are seeing and hearing) began taking applications for Paycheck Protection Program loans. Last evening the Small Business Administration released an “interim final rule” (doesn’t sound too final with that description). The rule updated the application process with changes from previous discussions and differences from the text of the CARES Act as follows.

CARES Act Economic Impact Payment Information

The Internal Revenue Service late this afternoon issued guidance (IR-2020-61) about the CARES Act economic impact payments that will be made. These are the payments to eligible individuals based on income levels. The IRS has announced that they will begin sending out the payments in the next three weeks. Here are the details.

It’s official, the CARES Act was signed into law today.

The President just signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). We are digesting the 880 pages of law and will be providing updates on a regular basis. In the meantime, we’d like to get some of the highlights to you.

A key business provision of the CARES Act provides for Payroll Protection loans of up to $10 million to COVID-19 impacted businesses with fewer than 500 employees.

The loans provide for the following.

CARES Act, First Look for Business

Late Wednesday, the US Senate voted unanimously to advance “Phase Three” as part of the economic relief effort for COVID-19 emergency. The legislation, entitled the “Coronavirus Aid, Relief, and Economic Security Act” (the CARES Act), follows intense negotiations over the last week. Its estimated $2+ trillion price includes: immediate cash relief for individual citizens; a broad lending program for small business; extraordinary public health spending to confront coronavirus; and, targeted relief for specific industries hit hard by the pandemic.

The CARES Act is 880 pages long, consisting of several different Divisions and Titles. We’re still digesting the complex legislation and remind you that it has not yet been signed into law. It still must get through the House of Representatives. Although not yet law, we believe it is important to for our clients to be at the front end of the opportunities and changes that may become law any day.