SMALL BUSINESS OWNERS GUIDE TO THE CARES ACT

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non-profits and other employers.

This guide provides information about the major programs and initiatives that are and will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA.

Help understanding the CARES Act. Several programs are available. Specific details for each of the programs are in the links below.

Do you need:

• Capital to cover the cost of retaining employees for 8 weeks? Then the Paycheck Protection Program might be right for you. CARES Act Paycheck Protection Program (PPP) Loans
• A quick infusion of a smaller amount of cash to cover you right now? You might want to look into an Emergency Economic Injury Grant. CARES Act Economic Injury Disaster Loans (EIDL) & Emergency Economic Injury Grants (EEIG)
• A Payroll tax credit or a delay of payroll taxes to ease the financial burden? Then a refundable payroll tax credit or deferment of employer payroll taxes might be right for you. CARES Act Employee Retention Credit for Employers
• To ease your fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help. CARES Act Small Business Debt Relief Program
• Just some quality, free counseling to help you navigate this uncertain economic time? The resource partners might be your best bet. Sources for Counseling and Training

So, based on my reading thus far, my recommendation today of what to do first, second, third is:

FIRST

If you have payroll the PPP is the first thing to do which means you should call your FDIC banker and ask what their procedures are and if you can make an appointment to obtain your PPP.

If you do not have payroll, or your payroll is small, I feel the EIDL/EEIG is the first thing to do which means you should begin the SBA Application (please click on the EIDL/EEIG link above for further information)

SECOND

If you are going to do the PPP (which gives you money to spend in the next 8 weeks following the loan) and you feel you may need additional funding after the 8 weeks, then I suggest you also begin the SBA Application for the EIDL/EEIG. If, when the SBA reviews your case and determines the amount of the loan you are eligible for, you feel you no longer need the funds, you may simple close the case. At this time my understanding is the application process may take 2-3 weeks and the funding process 2-3 weeks after that.

THIRD

I feel the above Federal programs do not preclude you from applying for State assistance. As an individual you may be eligible to apply for Unemployment Benefits (please read the information provided in Michigan Unemployment link found on the home page).

Please keep coming back to the website for updated information from us and feel free to read what you can to try and stay on top of an ever changing environment.