We’ve been very busy working with clients over the past several weeks helping them navigate and prioritize the various pieces of new legislation passed to help businesses and their employees during this very difficult time. Over the past few weeks, three separate packages were approved by Congress and signed by President Trump to offer a variety of assistance.
Here’s a breakdown of what’s happened:
- Phase I (COVID-1) – Known as the Coronavirus Preparedness and Response Supplemental Appropriations Act, was enacted on March 6 and provides $8.3 Billion in emergency funding for federal agencies to respond to the Coronavirus outbreak, enabling the U.S Small Business Administration to offer $7 Billion in disaster assistance loans to small businesses impacted by COVID-19.
- Phase II (COVID-2) – The Families First Coronavirus Response Act was signed into law on March 18. As the title indicates, this law targets aid to “families first” and contains eight divisions designed to aid covered employees and households with eligible children affected by COVID-19.
- Phase III (COVID-3) – The CARES Act, signed into law March 27, 2020, represents the largest stimulus bill in U.S. history at $2.2 Trillion. The CARES Act has several components aimed at helping businesses survive and recover from losses suffered during the Coronavirus outbreak. Key components of the CARES Act include a loan program from the SBA, changes to unemployment benefits and implemented favorable business tax provisions.
We created a guide to help you understand the changes and some guidance regarding what will have the most immediate impact on your business. This guide includes a recommended action plan for businesses and highlights the key components to understand now.
Inside the guide you’ll find more information on:
- Phases and Eligibility
- Recommended Action Plan for Employers
- Recap of Section 1102 of COVID-3 – Paycheck Protection Program
- Recap of Section 2301 of COVID-3 – Employee Retention Credit
- Application for Economic Injury Disaster Loan
Please review the guide and contact ARB with questions you may have.
Written by Bart Haag, CPA and David Jean, CPA.