The U.S. government had passed three landmark acts to aid individuals and small business impacted by the COVID-19 Pandemic. This includes the largest economic stimulus package in U.S. history.
- The Coronavirus Aid, Relief, and Economic Security Act (or CARES Act) which direct more than $2 trillion to the U.S. economy. It allocates funds to citizens, relief-oriented aid, government departments, and business of all sizes. It offers low-interest loan options, tax deferrals, and more financial aid to help companies stay in business.
- The Coronavirus Preparedness and Response Supplemental Appropriations Act was signed prior to this act directly emergency funds to essential government departments including Department of Health and Human Services, state governments, and the Small Business Administration.
- The Families First Coronavirus Response Act (FFCRA) protects families and individuals from unpaid sick or family leave. It also provides funding to the departments overseeing U.S. unemployment insurance.
The CARES Act is outlined in an 800-page document with enough legal jargon to overwhelm anyone trying to make sense out of it. At a time when small business owners are desperately trying to research their options, this article will try to walk you through each major benefit that the acts offer.
The Stimulus Package for Small Businesses
The CARES Act provides low-interest loans to small businesses, tax deferrals to organization of all sizes, an expansion of unemployment options for individuals, and one-time payouts for taxpayers. The act also provides education, training and advising grants to small business development organizations, women’s business centers, and the Minority Business Development Agency.
The following is four major factors that will impact small businesses, employees, and owners in the near future.