CARES Act: What it Means for Businesses and Individuals
On Friday, March 27th, 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The $2 trillion stimulus legislation aims to provide economic relief to small businesses, distressed industries, individuals and other groups following the unprecedented impact of the coronavirus outbreak on the American economy and communities.
What it means for small business owners:
One of the core measures of the CARES Act is the Paycheck Protection Program (PPP). This is a nearly $350 billion loan program meant to offer relief to small business owners, primarily to keep employees on payroll and cover other critical expenses. Importantly, a portion of these loans may be forgiven so long as businesses continue to pay payroll costs, rent and utility payments.
For assistance navigating loan eligibility and answers to frequently asked questions, companies are encouraged to visit the Small Business Administration website SBA.gov, which provides information on COVID-19 related programs, including the Paycheck Protection Program, Economic Injury Disaster Loans and Emergency Grants, and Small Business Debt Relief.
Download The Emergency Loans Small Business Guide PDF
What it means for large corporations:
Part of the stimulus package authorizes roughly $500 billion in loans and other investment options for big corporations. The CARES Act extends funds to help airlines, aviation businesses and other infrastructure sectors. These loans are subject to multiple conditions, restrictions and do not include a mechanism for forgiveness.
What it means for workers and individuals:
The CARES Act provides moderate-to-low-income individuals a direct cash payment of $1,200 ($2,400 for joint taxpayers) and $500 for each dependent child.
Additionally, the stimulus legislation temporarily expands unemployment benefits to individuals not traditionally eligible for unemployment benefits and who are unable to work as a direct result of COVID-19, such as self-employed workers, freelancers and independent contractors.
Need Help Navigating All These Resources?
The Los Angeles County has a dedicated call center for businesses as well as employees to help during the COVID-19 emergency.
Counselors are available Monday through Friday from 8:00 a.m. to 4:30 p.m. to help business owners navigate loan applications and help individuals that were recently laid off due to this emergency.
Contact the Business & Worker Disaster Help Center: