The CARES Act was passed at the federal level on March 27, 2020, and for the past 24 hours we have been hearing understandable confusion from the business community as they try to understand what it all means and what they should be doing. Here are some of the different components of the CARES Act that we at Main Street Waterbury feel might directly apply to Waterbury’s small businesses and business owners. To access the Small Business Guide to the CARES Act from the Division of Emergency Management and Homeland Security. Click Here
NOTE: This should NOT be considered a definitive guide or expert advice – this is simply the best we have been able to do with the information currently available to try and boil it down to the basics. Agencies and lenders are also processing this information yet, so please be patient as they try to catch up and assist you. Currently here is a list of the CT SBA active lenders, we anticipate that the Federal government will provide guidance on who is included, so please be sure to confirm.
Changes/expansions to the SBA Economic Industry Disaster Loans (EIDLs)
These are the federal loans we have already been heavily promoting (https://www.sba.gov/funding-programs/disaster-assistance), only now they have been expanded with extra benefits:
***Can a business get an EIDL and a Paycheck Protection Program loan?
Yes, small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses. However, be sure to check with your financial advisor or lender before taking both types of loans if you are not sure of the specifics.
Relief for Existing SBA Loans
If you already HAVE an existing SBA loan, you may be eligible to have up to six months of payments covered. Contact your lender to find out more.
Business tax provisions
There is a LOT to unpack here, so best recommendation would be to eventually discuss them with a tax professional about which might apply to your company – you should have time to do this as the dust settles.
Pandemic Unemployment Assistance Program
Extra Unemployment Benefits
Health Insurance Coverage
Additional (smaller) changes to the previously passed Family First Coronavirus Response Act
These are finer points that primarily tweak the exact caps and parameters of how much businesses may be required to pay IF your employee meets the requirements to be covered by this law. For the latest release of FACTS and Q&Q click here (as of March 30, 2020): https://www.dol.gov/agencies/whd/pandemic