The CARES Act’s Title I: Keeping American Workers Paid and Employed, contains several relief provisions. Two programs of note for NSA Members include:
1. The temporary expansion of the Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL) to include emergency advance of up to $10,000 within 3 days of applying for an EIDL.
2. The new Paycheck Protection Program Loans administered under the SBA’s 7(a) Loan Program offering various loans to small businesses.
For more information, please CLICK HERE
Delay Employer Payroll Tax Payments:
Small business employers can delay payment of 2020 payroll taxes until 2021 and 2022.
Restores the Carryback of Business Losses:
In order to generate cash flow, this bill reinstates, retroactively, the ability to carry back business losses (NOLs) incurred in 2018, 2019, and 2020 to the previous 5 years. Currently, NOLs can only be carried forward to offset taxable income.
Restores Accelerated Write-Off of Property
Left out of the 2017 Tax Reform bill, this restores accelerated expensing of investments in real property improvements on a retroactive basis. This will allow higher write-offs to businesses that made these investments in 2019 and creates refunds if made in 2018.
Tax Credit for Maintaining Employment:
Small businesses of all sizes that face economic hardship due to the coronavirus crisis, yet continue to pay furloughed employees, are eligible for a 50% credit on up to $10,000 of wages paid to those employees. Objective is to help keep your workers around for when the crisis has ended.
Small Business Access to Cash:
$350 billion of funding is being provided for Small Business Administration (SBA) loan guarantees and other funding. There are meaningful changes to the existing SBA program:
• Substantially loosens the barriers in obtaining funding such as removing loan guarantees, relaxes credit check rules, expanding the payback period;
• Increases maximum loan amounts;
• Expansion on the type of business expenses the funds can be used to fund;
• Suspension of SBA loan payments for six months for those who have current loans; and
• Loan forgiveness for those who maintain employees and use the funds for expenses such as payroll, interest, rent and utilities.
NOTE: We will provide a much more detailed review of this provision in the coming series.
PPP Payroll Calculator (click to download spreadsheet)
Additional Helpful Information for Your Business
Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). Click here to apply