Federal Coronavirus Stimulus Act Provides Benefits for Struggling Businesses
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.