The CARES Act

The CARES Act Stimulus For Small Business Owners

The programs and initiatives included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act are intended to assist small business owners with a massive stimulus for both workplaces and their valued employees.  Employers struggling to cope with the financial impact caused by the COVID-19 crisis finally have some good news.  Learn How the CARES Act can help your business survive.


Small Business “Paycheck Protection” Loans

The centerpiece of the CARES Act allows for small and medium-sized businesses to receive 100% federal loans – in some cases forgivable – to cover payroll and other expenses. The covered period for loans is February 15, 2020 through June 30, 2020.

Who Is Eligible For Loans?

These loans are available for businesses with not more than 500 employees. Lenders will determine eligibility for the loans based on whether the business was operational as of February 15, 2020, had employees on payroll, and paid wages and payroll taxes.

What Can The Loans Be Used For?

The loans may be used for payroll costs, healthcare, rent, utilities, and other debts incurred by the business.

How Much Are The Loans?

Loan amounts will be available based on a formula.  The amounts available will be the lesser of:

  • Average monthly payroll costs during the prior year x 2.5; or
  • $10 million

So, for example: ABC’s average payroll costs for the previous twelve months is $30,000. The maximum loan amount is equal to $75,000.if the employer had an average monthly payroll of $900,000 over the prior year, it would be eligible for a loan of $2.25 million ($900,000 average monthly payroll times 2.5).

Can The Loans Be Forgiven?

The federal government will forgive the loans in an amount equal to the amount of qualifying costs spent during an eight-week period after the origination of the loan. These qualifying costs include payroll costs (except of wages above $100,000 per employee), interest on secured debt obligations, and rent and utilities in place prior to February 2020.

The amount of the forgiveness for the loans will be reduced if the employer:

  • Reduces its workforce during the eight-week period compared to prior periods; or
  • Reduces the salary or wages paid to an employee by more than 25% during the 8-week period (compared to the most recent quarter).

In addition, any reduction in the amount of loan forgiveness will be completely avoided if the employer re-hires all employees laid off (going back to February 15, 2020), or increased their previously reduced wages, no later than June 20, 2020.

Contact Us To Apply for Paycheck Loans by June 30, 2020

White, Hilferty & Albanese has quickly put together a team of attorneys to assist business owners with the loan process and point you in the right direction.  We can help employers nationwide Contact us to schedule your consultation or Call  646-698-8990