CARES Act Summary: Businesses

CARES Act Summary: Businesses

We at Starke want to make sure you stay informed as new information arises every day. We are certain you’re receiving numerous emails relating to COVID-19. It is our intent to provide useful, current information. Below is a summary of the CARES Act. While we are just learning the details we are here to help you in any way.

 Loans to help cash flow for “small” businesses and nonprofits with 500 employees or less; the amount of the loan can be up to 2 ½ times your average monthly payroll (up to a maximum of $10 million); importantly, a significant portion of these loans will be forgiven for businesses that retain or rehire employees between now and June 30th.

– Provides $500 billion for loans to struggling businesses and governments

  • This increases SBA Express Loans from $350k to $1 million.
  • Allows for delay in employee payroll taxes.
  •  Elimination of tax limitations on losses for taxpayers other than corporations during the tax year.

– Adds $600 per week to unemployment benefits.

– Covers payroll, employee benefits, mortgage, rent and utilities.
 

– Self-employed individuals and independent contractors can also take advantage of this program.
 

– The total amount spent on payroll costs, benefits, mortgage payments, rent and utilities between February 15 and June 30 is forgiven from the loan (Payment Protection Program).
 
– The loans are guaranteed 100% by the Small Business Association (SBA). 

– Provides $1200 per person to adults earning less than $75,000 per year, plus $500 per child under 16 years old.