As small business owners grapple with the economic realities of nationwide stay-home orders and social distancing mandates, legislatures have been updating laws and developing new programs to keep the economy afloat. The latest and most groundbreaking is the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2.2 trillion stimulus package aimed at supporting individuals, businesses, and governments now and beyond this pandemic. The federal government has earmarked $377 million to help small businesses avoid failure and encourage them to retain their workforces. Here are the most important things for business owners to know about the CARES Act:
There have also been amendments to retirement fund regulations resulting in the removal of the 10 percent withdrawal penalty and the increase of the loan limit on 401(k) loans. Up to $100,000 can be borrowed under CARES as compared to the former $50,000 limitation.
You Are Not Alone
Identifying how specific provisions of the CARES Act relate to your business is not simple. If you need assistance understanding the new laws and positioning your business to survive this pandemic, we are here to help. Call our office to schedule a meeting. We will help you prepare the necessary legal documents as you focus on leading your business through these challenging times.
 Coronavirus (COVID-19): Small Business Guidance & Loan Resources, U.S. Small Bus. Assoc., https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-4 (last visited Apr. 1, 2020).
 CARES Act - Removal of Excess Business Loss Limitation, Schneider Downs, https://schneiderdowns.com/our-thoughts-on/cares-act-business-loss-limitation (last visited Apr. 1, 2020).