2020 CARES ACT
The Federal Coronavirus Relief Bill (Coronavirus Aid, Relief, & Economic Security Act) provides significant loans and grants to most business with fewer than 500 employees. These funds can be used to keep key employees, to meet obligations during business interruptions, and to build cash reserves to expand the business as the economic recovery begins.
The CARES ACT provides six distinct programs to provide loans and grants.
Some of these loans can be converted to grants by properly managing and documenting the expenses.
- Paycheck Protection Program (PPP)
- Economic Injury Disaster Loan (EIDL)
- Emergency Economic Injury Grant (EEIG)
- Employee Retention Credit
- Payroll Tax Deferral
- SBA Debt Relief Program (For Those with Existing SBA 7(a) Loans)
The key is identifying the benefits available to your business, identifying the best sources, accurately completing applications to maximize benefits, knowing how to track the process, and properly managing the funds and disbursements to maximize the amount convertible to grants and to reduce your borrowing expense.
The disruption to business presents a huge opportunity to fine tune and refocus your business. Those that use the pause to solidify their business and to develop strategies for the recovery will be best positioned to build market share and profitability.
Contact us today. We can help.