Federal Aid for Small Businesses
PPP Loans were created by the CARES Act and Paycheck Protection Program to help businesses keep Americans employed. If used for qualifying expenses, PPP loans are eligible for forgiveness. Learn more about the Paycheck Protection Program and PPP loans.
Economic Injury Disaster Loans (EIDLs) are available for businesses that have suffered a financial hit from the COVID-19 pandemic (which is the majority of small businesses). During the COVID-19 pandemic, the government is offering EIDLs for businesses in all U.S. states and territories.
In March 2020, the United States government passed the Coronavirus Aid, Relief and Economic Security Act, known as the CARES Act. This new law is meant to provide economic relief to Americans and small businesses affected by the coronavirus (COVID-19) pandemic. For businesses, the CARES Act outlined several initiatives and funding programs designed to help businesses keep employees and pay monthly obligations. The CARES Act introduces a new small business relief program, called the Paycheck Protection Program, expands on existing Economic Injury Disaster Loans and designates a series of other relief initiatives. In addition to PPP Loans and EIDLs, the CARES Act provides other relief for small businesses, such as temporary SBA loan forgiveness and tax relief. Learn more about what the CARES Act can mean for your business.
The CARES Act also provides some tax relief to small businesses whose operations are heavily impacted by government orders to suspend travel and group meetings, or whose gross receipts are less than 50% of the same quarter last year. This initiative provides a refundable payroll tax credit for 50% of wages paid by employers, up to $10,000 between March 13 and December 31, 2020. The CARES Act also allows employers to delay payroll tax payment, specifically the employer obligation of Social Security tax. However, these tax relief provisions do not apply to businesses who utilize the Paycheck Protection Program (PPP).
Business Tips for the COVID-19 Pandemic
Our guide for how to stay safe, manage employees and maintain customers during COVID-19.
How to optimize online platforms to do business during stay at home orders.