Midstream suppliers and service providers are facing a multitude of challenges as the industry continues to be impacted by these unprecedented times. This shift has left many companies scrambling to address cash flow concerns and make payroll.

While many business owners have turned to the Payroll Protection Program […]

The CARES Act: What it Means for U.S. Businesses Amidst the Coronavirus Pandemic

Congress recently passed the CARES Act, which was immediately signed into law on March 27.

The economic stimulus bill consists of a historic $2 trillion meant to help taxpayers, including individuals and businesses alike, weather the storm wrought by COVID-19.

Other than the direct payments that individual taxpayers will receive from the IRS, there are several provisions included in the CARES Act that should be considered by American small and medium sized businesses who are struggling to stay afloat due to a lack of liquidity in these trying times.

Here are some of the key aspects of the CARES Act that U.S. businesses should take a look at now:

• SBA Loans- The CARES Act included $349 billion in loan commitments for a “Paycheck Protection Loan Program” through the Small Business Administration’s 7(a) program. These loans are limited to either $10 million […]
  

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Fully Forgiven

Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

All Small Businesses Eligible

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal […]