On Friday, March 27, 2020 President Trump signed it into law the CARES Act, a $2 trillion coronavirus economic stimulus bill. This legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak. Although the CARES Act covers many elements in our economy, this podcast explains how small businesses can take advantage of this landmark stimulus package.
Special guest Andy Contiguglia of the Contigugila Law Firm joins Taylor Leary and explains how the CARES Act impacts small businesses. Andy is a business attorney and risk management consultant in the Denver area. He specializes in helping business owners take a proactive legal approach to navigate the often challenging and confusing legal landscape. Right now he is on the front lines of helping his business owner clients with the response to COVID-19.
Topics covered in the podcast:
- How Andy sees small businesses react to the changing workplace environment. Many companies are forced to temporarily shut their doors like salons and fitness studios, or changing how they serve their customers like restaurants and grocery stores, and employees are transitioning to working from home. We are seeing a new way of doing business.
- The passage of the CARES Act made available $350 Billion to small businesses, those businesses with fewer than 500 employees. With nearly every business in some way, shape, or from being affected all business owners should submit an application to receive money.
- The CARES Act was passed to inject capital into small businesses to help overcome the economic challenges introduced by the Coronavirus pandemic. The bill allows for companies to received up to 2.5 times their monthly payroll. If used properly the loan will be forgiven as a grant and not required to be repaid. The remainder of the loan not converted to a grant will have a very low-interest rate.
- Small businesses looking to take advantage of the stimulus money must work with their banker or contact a bank. The money is not being doled out directly by the Small Business Administration, rather local and national banks will coordinate the application process.
- Although this is a great benefit, there are some legal issues you must consider. Andy covers a few of the hot button items.
- In the end, this economic crisis will have lasting effects. The way business conduct business will likely be forever changed.
Andy goes into additional detail in in his blog article, The CARES Financial Relief Act: What Everybody Ought to Know About it for their Small Business.
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