Also today, the United States Congress approved the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). It is expected to be signed by President Trump soon.
- Enhanced SBA eligibility includes business with 500 or less employees or otherwise meeting SBA definitions, and self-employed individuals/independent contractors.
- Some SBA loan assistance MAY be forgivable for funds spent during 8-week period after origination in the amount equal to payroll, mortgage interest, lease and utility.
- Expands eligibility for the existing EIDL program to sole proprietors and independent contractors.
- SBA Express Loan cap would increase from $350,000 to $1 million.
- Extends net operating loss (NOL) carry back to 5 years, including pass-through organizations.
- Temporarily increases the amount of interest expense businesses can deduct from 30% to 50%.
- Modifies the Families First Coronavirus Response Act to cap paid sick leave at $511 per day and $5,110 in aggregate (less if caring for someone else or due to school closure).
- Federal Medical Leave Act requirements under the prior law are capped at $200 per day and $10K in aggregate.
- Provides funding to support “short-time compensation” programs, where employers reduce employee hours instead of laying off employees. Essentially a partial unemployment benefit. Federal government will pay 100% for states with programs in existence and 50% for states that initiate the program through year end.
As more information about these provisions becomes available in the coming days, you can count on the Toledo Regional Chamber of Commerce to keep you up to date with accurate information about the assistance available.
Read the full CARES Act here: H.R.748 - CARES Act
For small business assistance, please reach out to Bill Wersell with our Small Business Development Center at firstname.lastname@example.org.