Benefits that Could be Available to You Under the CARES Act

We’ve compiled a few CARES Act resources into a Quick Reference Guide for Small Business Owners and Sole Proprietors with the financial professionals and agency owners we work with in mind.

What is the CARES Act? The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law meant to address the economic fallout of the 2020 coronavirus pandemic in the United States.

With limited time and relief available, we felt it was important to get these resources in front of as many of our agencies and financial professionals as possible. Especially now that we've learned that as of April 16, 2020, the Small Business Administration (SBA) has announced that $349 billion allocated for PPP Loans has been used up.

 Although that may be true, we’d encourage you to review the handpicked resources we’ve compiled to quickly find information about the stimulus bill and how you could potentially still get the relief you may need for your business during this global crisis. Because it’s possible (and we’re holding out hope) that Congress will provide additional funding. Being proactive could help put you ahead of the curve, if that happens.

Our objective is to share information that may be helpful in navigating through any confusion. However, you should contact your CPA and/or SBA-approved lenders for guidance in determining whether one of these time-sensitive options may be right for you and your business.

We’ll do our best in continuing to monitor changes and updates that occur and provide ongoing communication. 

We’re here to support you through these uncertain times and beyond.

Quick Reference Guide – CARES Act

Overview of the $2T Stimulus Bill:

From Arthur J. Gallagher:

COVID-19 Compliance Connection

Coronavirus (COVID-19) Pandemic Information Hub

Provides a nice overview of the components of the stimulus bill.  A highlight for small businesses and self-employed individuals is found on page 4, specifically the loan program of $350 billion and the inclusion of those who are self-employed in qualifying for unemployment benefit of $600 per week. 

Review of Benefits for Small Business and Independent Contractors

• AALU/GAMA PowerPoint and presentation (both available to the public)
  • Recorded webinar
  • Slide Deck

Provides info and eight examples of small businesses on the Paycheck Protection Program (PPP).  This presentation includes info about sole proprietor/independent contractor options (example 4).

• NAILBA PowerPoint and presentation
  • Recorded Webinar
  • Slide Deck

Useful information on the PPP, Emergency Economic Injury Grant (EEIG), etc. that a small business (insurance agency) might qualify for.

• Paycheck Protection Program (PPP) FAQs
• CARES Act Assistance for Small Businesses 
• Business Loan Program Temporary Changes; Paycheck Protection Program – Additional
  Eligibility Criteria and Requirements for Certain Pledges of Loans

Additional Resources

• The Small Business Owner’s Guide to the CARES Act
  • Sent out by Senator Ben Cardin, U.S. Senate Committee on Small Business & Entrepreneurship
• PPP Calculator
  • For those who wish to apply for an SBA PPP loan for their small business, the SBA provides this PPP loan calculator to figure out what your business can apply for.

State-Specific Resources

California

• Guidance from EDD website on how to treat gross wages during the period of receiving unemployment benefits.

Questions to Consider

1. Have you reviewed the handful of programs designed to support small businesses and how the programs work in tandem?  i.e., Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) -- Small businesses are eligible to apply for both but must be used to pay for different expenses.
2. Since the rules state you can only apply once, have you determined if this is the right time for your business to receive apply/qualify/receive the loan?  You have eight weeks to spend the money so for businesses that are shut down -- it may not make sense at this time.
3. Have you considered the additional information required by your SBA-approved lender during the application process and how long it may take to obtain that information? 
4. What ways will you provide detail on how the loan was used, so you can apply for loan forgiveness after the eight weeks? Hint: You might set up a separate account just for the PPP.
5. Since this is an unprecedented measure created to support small businesses, have you considered your ability to repay the loan in the event a portion is not considered “forgivable?”