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.
The CARES Act encourages individuals to contribute to Nonprofits in 2020 by relaxing some of the limitations on charitable contributions:
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:
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.
Let us help you! Stay safe and always remember, we’re in this together.