On March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act’’ was passed by the House of Representatives and signed by President Trump. In addition to providing relief to families, COVID-19 relief may be available to qualifying businesses (both for profits and non-profits) under the Act. One principal component is the Paycheck Protection Program Loan that provides businesses funds that may be used for eligible payroll expenses, rent, benefits, and utilities during the period from February 15, 2020 through June 30, 2020. If you are considering a Paycheck Protection Program Loan, you should contact your lender immediately to apply, as funds available may be depleted quickly. The U.S Senate Committee on Small Business and Entrepreneurship published a helpful summary of the CARES Act with a particular focus on the interests of small to medium size businesses.
Nonprofits should also take note that COVID-19 relief may be available under the Act. The National Council of Nonprofits recently published a helpful summary of CARES Act provisions of interest to nonprofits.
If you missed our previous alerts on COVID-19 related legislation and issues, you can find them here.