The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed and signed into law last week, provides massive new programs and initiatives to assist U.S. businesses impacted by the Coronavirus pandemic.
What does this mean for your repair business?
Depending on your circumstance and the characteristics of your business, you may be eligible to access economic relief from the new legislation.
Here are some helpful links to more comprehensive guides that can help you fully understand the programs and initiatives, and help you determine your eligibility:
U.S. Chamber of Commerce Guide to CARES Act: (this source is being updated regularly to reflect new developments):
U.S. Senate Committee on Small Business & Entrepreneurship Guide to CARES Act:
Here is a quick overview of the new programs & initiatives outlined in the legislation:
Paycheck Protection Program (PPP) Loans
Cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis.
Small Business Debt Relief Program
This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months.
Economic Injury Disaster Loans & Emergency Economic Injury Grants
These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL).
Small Business Tax Provisions
This provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis.
Counseling & Training
If you, like many small business owners, need a business counselor to help guide you through this uncertain time, you can turn to your local Small Business Development Center (SBDC), Women’s Business Center (WBC), or SCORE mentorship chapter. These resource partners, and the associations that represent them, will receive additional funds to expand their reach and better support small business owners with counseling and up-to-date information regarding COVID-19.
Click here for the full text of the CARES Act: