As a result of the coronavirus (“COVID19”), the federal government has taken significant action to provide relief to individuals and business struggling with economic hardships as a result of lost business during widespread closures and stay-at-home orders. The first major legislation passed by the federal government was the Families First Coronavirus Response Act which provided job protection and paid leave provisions. Now, the government has recently passed the Coronavirus Aid, Relief, and Economic Security Act (also known as the “CARES Act”).
The CARES Act provides for approximately $2 trillion in relief aid through expanded unemployment assistance, individual relief checks, tax credits, loans, and grants to businesses which were closed or significantly effected by COVID-19, and funding to hospitals and health care facilities.
Small businesses in particular which are struggling with the current situation economically should look into applying for one or more of these relief options. For example, a business may apply for a $10,000 immediate advance to cover emergency costs that they are unable to pay because of the COVID-19 situation. Expenses covered would, of course, have to be legitimate business costs such as payroll and utilities.
Businesses may also apply for low interest loans with the Small Business Administration (“SBA”). They may also or alternatively want to apply for loans through the Payroll Protection Program (“PPP”) – which may largely be treated more like a grant program than a loan depending on the uses of the funds and the business’s continuation of employment for its employees. Applications for the PPP would be through SBA-approved banking institutions. For the most part, these banks are still awaiting further guidance on the applications rules and requirements. However, such guidance is imminent. Business owners should be ready to take steps immediately to obtain these much-needed benefits.
The attorneys at McLaughlin & Nardi, LLC are continuously monitoring the ever-evolving and expanding rules and procedures in relation to the CARES Act and are able and available to assist with determining if your business qualifies for the above assistance, and to assist you with navigating through the requirements to obtain this assistance. We are and will continue to be here for you and your business during these particularly difficult times to assist in navigating these new laws as they develop. To learn more about what we may be able to do to help, please contact us by e-mail at firstname.lastname@example.org or telephone at (973) 890-0004.