Have you heard about the C.A.R.E.S. ACT? On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law. This $2.2 trillion emergency relief package is intended to assist individuals and businesses during the ongoing coronavirus pandemic and accompanying economic crisis. The federal government has authorized this money to help small businesses avoid failure and encourage them to retain their workforces.
Your business might be able to survive this pandemic disaster if you apply and qualify for one of the following programs:
- Small Business Administration Economic Injury Disaster Loan: a low-interest federal disaster loan to help businesses maintain cash flow for payroll, utilities, rent, and other fixed debts;
- Small Business Administration Emergency Economic Injury Grant: provides $10,000 as grants, in the form of a loan advance, if a business can show economic injury caused by the COVID-19 pandemic;
- Paycheck Protection Program: offers federally backed loans to encourage business owners to keep their employees on the payroll. Businesses with less than 500 employees, sole proprietorships, independent contractors, and private nonprofits are eligible;
- Small Business Debt Relief Program: defers loan payments for businesses that have SBA 7(a), 504, or microloans;
- Employee Retention Tax Credit: for Employers subject to closure or experiencing economic hardship as a direct result of the COVID-19 outbreak and whose gross receipts are below 50 percent of their prior amounts as of 2019 are eligible for tax credits for wages paid to employees during this time.
As you prepare your applications for these programs, consider calling your business law attorney to organize your company minute book or help you hold a director or shareholder’s meeting to get your minute book up to date. Resolutions and minutes provide your company with a historical record, are evidence of internal approvals of decisions and delegations of authority, are evidence of compliance of government regulations, and serve as prima facie evidence of the facts recited.