Stimulus Package Breakdown What’s in It for Small Businesses

The stimulus package, also known as the CARES Act, includes several provisions aimed at helping small businesses affected by the COVID-19 pandemic. Here are some of the key benefits:

1.      Paycheck Protection Program (PPP): This program provides forgivable loans to small businesses to cover payroll costs, rent, and utilities. The loans can be forgiven if the business uses the funds for eligible expenses and maintains their payroll.

2.      Economic Injury Disaster Loans (EIDL): This program provides low-interest loans to small businesses that have suffered economic injury due to the pandemic. The loans can be used to cover a wide range of expenses, including payroll, rent, and other operating costs.

3.      Employee Retention Tax Credit: This credit provides a refundable tax credit to businesses that retain their employees during the pandemic. The credit is equal to 50% of qualified wages paid to employees, up to a maximum of $5,000 per employee.

4.      Small Business Debt Relief Program: This program provides immediate relief to small businesses with non-disaster SBA loans, including 7(a), 504, and microloans. The SBA will cover all loan payments for six months, including principal, interest, and fees.

5.      SBA Express Bridge Loans: This program provides expedited loans of up to $25,000 to small businesses that have an urgent need for cash while waiting for EIDL or PPP loan disbursements.