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$2 Trillion Economic Relief Plan Signed Into Law

announcement Mar 30, 2020

The President has just signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2 trillion emergency economic stimulus plan that will go into effect immediately.

Here's What You Need To Know:

The approximate breakdown of the funding that is $560 billion for individuals, $500 billion for large corporations, $377 billion for small businesses, $340 billion for state and local governments, $153.5 billion for public health, and $26 billion for social safety net service providers.

The CARES Act amends the Small Business Act (SBA) to create a new Business Loan Program category. For the period from February 15, 2020 to June 30, 2020 (covered period), the law allows the Small Business Administration to provide 100% federally-backed loans up to a maximum amount to eligible businesses to help pay operational costs like payroll, rent, health benefits, insurance premiums, utilities, etc. Subject to certain conditions, loan amounts are forgivable.

  • Forgivable loans: There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

  • Emergency grants: The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.

  • Relief for existing loans: There is $17 billion to cover six months of payments for small businesses already using SBA loans.

The CARES Act encourages individuals to contribute to Nonprofits in 2020 by relaxing some of the limitations on charitable contributions:

  • Allowing a deduction of up to $300 of cash contributions, whether or not the taxpayer itemizes deductions

  • Suspending the 50% limitation on individuals, increasing to 25% the 10% limitation on corporations, and increasing to 25% the 15% limitation on food inventory.

The CARES Act provides for recovery rebates of up to $1,200 ($2,400 for joint filers) for US taxpayers. The mechanism for paying the rebates is an advance refundable tax credit. The rebates are subject to certain special rules:

  • Amounts are increased by $500 for each child

  • Amounts are phased out for taxpayers making $75,000 ($150,000 for joint filers, and as added by the CARES Act, $112,500 for heads of household).

Here's a diagram to illustrate the Recovery Rebate for individual taxpayers below: 


We here at The Power Of Purpose remain optimistic that our elected leaders will continue to enact measures to help our country and this law is a solid foundation to build upon. 


We have designed a special web application to help you verify the eligibility of your business to see if you qualify for these loans and grants!

This will help you determine the eligibility of your small business, nonprofit, or both.

My team is also personally helping people determine if their small business is eligible to apply and next steps.

Visit the link below to determine your eligibility. After completing the web form, I highly encourage you to book an appointment with my team to discuss the eligibility criteria of your small business.

Check Your Eligibility For This Funding Here

 

Let us help you! Stay safe and always remember, we’re in this together.

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