Apr 1, 2020
The much anticipated Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, in an attempt to help U.S. citizens and businesses recover from the economic impact of the COVID-19 pandemic. We dedicated today’s episode to reviewing provisions of this act. Grant discusses several major features of the CARES act and what they mean for entrepreneurs and small business owners.
[02:00] Introduction – A brief overview of the CARES act and its purpose.
[05:45] Paycheck Protection Program – The CARES act offers a loan program to help small businesses with their payroll. Grant reviews the terms of this program and the process of obtaining a loan under this program.
[11:21] Forgivable Loans – For loans obtained under the paycheck protection program, certain types of expenses are forgivable. Grant explains what types of expenses are eligible for this.
[18:42] Employee Retention Credit – Grant talks about how the CARES act offers an incentive for employers to lay fewer people off.
[26:05] Payroll Tax Deferral – The CARES act has a provision that allows you to stop paying payroll taxes right now and defer them until 2021 or 2022. Grant explains how this could be beneficial to small business owners as well as self-employed people.
[29:54] Net Operating Losses – Grant reviews the tax benefits available under the CARES act when you have a net operating loss in your business.
[33:23] Checks for Individuals – The CARES act also provides provisions to cut checks to taxpaying individuals. Grant discusses the eligibility criteria for this and the amounts available in different scenarios.
[38:53] Charitable Contributions – Grant discusses what new benefits are available for charitable contributions under the CARES act.
Resources:
The CARES Act: bit.ly/39x1A47
Episode 02: An Overview of SBA lending with Joe McClure & Chris Boessenecker – bit.ly/2QCF9Eg
SBA Lending Info: bit.ly/34V0g9O