CARES Act Summary for Small Businesses
From the desk of State Rep. William Petit:
Hello, I'm writing to share information I hope will either help you, your employer or a business owner that you know locally or somewhere else in our state. The state's Department of Economic and Community Development (DECD) has shared a summary of the business-related provisions included in the recently-passed Coronoavirus Aid, Relief, and Economic Security (CARES) Act adopted by Congress last week.
CARES Act Summary Information
Paycheck Protection Program (PPP) Loans: Provide cash-flow assistance through federally-guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans will be forgiven.
Economic Injury Disaster Loans & Emergency Injury Grants: An emergency advance of up to $10,000 to small businesses and private nonprofits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan. Grants and loans may be used to keep employees on payroll, pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Small Business Debt Relief Program: Provides immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under this program, the SBA will cover all loan payments on previously secured SBA loans, including principal, interest, and fees, for six months.
Employee Retention Credit for Employers Subject to Closure or Experiencing Economic Hardship: A refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis.
Delay of Payment of Employer Payroll Taxes: Allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the otehr at the end of 2022.
Counseling and Training: Local resource partners can be found here.
A Small Business Owner's Guide to the CARES Act
U.S. COC (Emergency Loans) Guide and Checklist
In addition to the above initiatives, DECD reminds employers of these programs:
Federal Emergency Paid Leave Program: Through the end of 2020, employers with fewer than 500 employees must provide 80 hours of paid sick leave and 10 weeks of paid family leave. Note that employers will be reimbursed by the IRS for 100% of the paid leave in 2 weeks or less. They will also be reimbursed for employees' health care premiums during leave. Current IRS guidance is here.
CT DOL's Shared Work Program: Allows employers to reduce employees' hours by up to 60% and DOL will step in to provide unemployment insurance (UI) benefits that help offset the lost wages, as well as the new federal UI supplement. More information about the program can be found here.
Many of these programs are also open to self-employed individuals. DECD encourages Connecticut businesses to act quickly to take advantage of the many resources being provided by the state and federal government during this crisis.
Contact Rep. William A. Petit Jr.
860-240-8700 | 800-842-1423