CARES Act provides relief for small business owners.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday March 27th. The relief provided by the CARES Act is a short-term program intended to help replace lost revenue for covering operating expenses and retention of employees. The Small Business Administration will administer this program and is intended to provide relief loans on favorable terms with a portion being forgivable if administered properly for certain covered expenses, such as payroll and other applicable operating expenses.
A more detailed description of the program can be found in an article titled “Understanding the Paycheck Protection Program” on the Economic Innovation Group’s website. Another article titled “Paycheck Protection Program Looks like a very sweet deal for employers” by Peter Reilly on Forbes website provides introductory information on the program with links to other applicable resources. Given every business is unique, determine if the relief provided by the CARES Act is applicable to your business by talking to a bank approved for SBA loans.
https://eig.org/news/understanding-the-paycheck-protection-program
Talk with your tax advisor for implications with respect of this relief on your business.
We hope you find this information helpful in these trying times! We are here to help, as always!!
Working as a team to better serve our clients; Iron Belt Partners @ Waddell & Reed.
This is meant for educational purposes only. The information is based on data gathered from what we believe are reliable sources. It is not guaranteed by LPL Financial as to the accuracy and is not intended to be used as the basis for any investment decisions.