From online research and news reports, Americans are asking questions about the CARES act, how the package works, and what it will accommodate. To further help you understand the governance, we've highlighted a few in the FAQ below.
The CARES Act was signed into law on March 27, 2020. Small business owners can begin applying for Economic Injury Disaster loans now and Paycheck Protection loans after April 3.
In a March 29 interview, U.S. Treasury Secretary Steven Mnuchin said individual's could see deposits within three weeks. If the IRS doesn't have an individuals direct deposit information, there will be measure in place to allow the person to submit it online rather than waiting for a check by mail.
Each aspect of the stimulus act passed has different eligibility requirements. Here's a quick rundown:
Aid for Individuals and Employees
Sick Leave and Unemployment Eligibility
If you identify as a sole-proprietor, you might qualify for a Small Business Administration loan.
Additionally, unemployment benefits have been expanded to allow self-employed citizens to apply. But, the government will approve this on a case-by-case basis. Aside from unemployment benefits, individuals and married with taxable income will receive a check as part of the CARES Act.
Yes. Aside from this stimulus package, many banks, credit providers, and lenders are offering private low-interest loans that are both related and unrelated to COVID-19. Many businesses, such as non-profits, health and wellness companies, or agricultural organizations, can even apply for small business grants which can be found on grants.gov.
You can also check with your state or the local chamber of commerce to see if your area offers any location-based small business funding.
Yes. This stimulus package provides aid to help small businesses and corporations pay business costs, including payroll. You may defer paying your payroll tax until December 2021 and December 2022.
Maybe. The CARES Act and the Preparedness and Response Supplemental Appropriations Acts provide more funding to the Small Business Administration to offer loans to small businesses impacted or at risk of financial troubles due to COVID-19. While these various acts and the SBA list that these loans can cover "business expenses," a specific expense list isn't provided.Because the Small Business Administration works with lenders who will provide the loans, small business owners should explain the need for the software expense to an SBA-approved lender to determine if this will be covered by a low-interest loan. If not, there are a number of grants.
Resources for Small Business Owners and Employees
We recognize that this is a difficult time for many small businesses that are facing extenuating circumstances.
Additionally, below are a few of the relief acts passed in the previous month.
To learn more about the stimulus package and other small business governance related to the current financial climate, you can also bookmark these helpful websites:
This blog post is meant as a basic resource and not a comprehensive guide. We will regularly update it to add more information as it becomes available.