by Nhit Hernandez firstname.lastname@example.org
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020, provides financial relief to individuals, businesses, state and local governments during the COVID-19 health crisis. Below are some of the provisions related to businesses and self-employed individuals. Consult with your local banker and check SBA.GOV for updates on funding options.
The $349 billion appropriated to the PPP was depleted within the first two weeks. Congress passed a bill on April 23, 2020 for an additional $320 billion infusion.
i. Forgiveness is based on employee retention or rehiring and maintaining salary levels similar to prior periods.
i. A business is disqualified if it has received the PPP loan. Self-employed persons are also not eligible.
i. Employers can claim up to $5,000 of credit per employee.
ii. Businesses with 100 or fewer employees can claim wages paid to working or non-working employees. Employers with more than 100 employees can claim the tax credit for wages paid to employees currently not working.