It has been some unusual times of late dealing with COVID-19. Businesses are struggling with decisions involving what to do with their employees and also how they are going to survive financially moving forward. There are programs being developed, both on a State level as well as a Federal level to help small business navigate the financial challenges they are faced with. I will be a resource for you to help navigate the various programs that are available to businesses to help get you through this unprecedented situation.
On Friday, the U.S. House of Representatives passed and President Trump signed a bipartisan bill to combat the public health and economic crisis caused by COVID-19. Included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act is a pro-worker, pro-business measure to support small businesses and help reduce employee layoffs around the nation. According to the latest estimates, the measure will provide roughly $55 billion in support to businesses who pay their employees rather than lay them off.
Some of the provisions in the CARES Act include: Direct Payments to Working Americans — the bill includes direct cash payments of $1,200 for each adult, with an additional $500 per child under 17. Unemployment Insurance ($260 billion) — a massive investment in the UI program providing a $600 increase for every American, plus an additional 13 weeks of federally-funded unemployment insurance benefits. Marshall Plan For Health Care System ($150 billion) — a historic investment to help fight COVID-19, covering personal protective equipment, testing supplies, increased workforce and training, and new construction. Small Business Rescue Plan ($377 billion) — $350 billion in loan forgiveness grants to small businesses and non-profits, $10 billion for SBA emergency grants of up to $10,000, and $17 billion for SBA to cover 6 months of payments for small businesses with existing SBA loans. State and Local Coronavirus Expenditures Fund ($150 billion) — to assist states and local governments with new COVID-19 response expenses.
The key provisions of the ERTC (Section 2301 of the CARES Act): The credit is equal to 50 percent of qualified wages (including health expenses) paid to an employee after March 12, 2020 in each calendar quarter, up to a total of $10,000 in qualified wages per employee for all quarters. The credit is taken against employment taxes, with any excess refunded to the employer. For employers with 100 or fewer employees, the credit applies if the employer had to fully or partially suspend operations due to a governmental order, or had a decline in revenue of 50% compared to the same quarter in 2019. The credit covers qualified wages paid after March 12, 2020 to December 31, 2020.
I encourage you to keep up to date with the ever-changing financial landscape. We are hopeful that state, local and federal actions will continue to find ways to mitigate some of the hardships that businesses are facing. If you are considering buying a business, I would suggest a meeting with a Business Broker. I welcome you to contact Central Florida Business Brokerage at info@CFBB.biz or call us at (407) 261-9001.