CARES Act Explained
In the aftermath of the passage of last week’s CARES Act, our Government & Regulatory Affairs Business Unit has compiled – in consultation with our tax, banking and labor and employment business units – summaries of the lending and tax relief provisions of this groundbreaking legislation. There are two separate documents – one for small businesses (as defined by the Act) and the other combining our tailored description of the tax and larger business lending programs.
Estimates of the cost of the tax provisions run more than $600 billion over the FY 2020-25 period, while the SBA and Distressed Lending Programs total approximately $849 billion. Estimates suggest that the SBA expects as many as 200,000+ applicants for the small business loan program alone.
As you navigate the tools available, we stand ready to help you address the complex opportunities provided by the recent Congressional legislation.
With the financial and public health risks apparent to us all, I want you to know that our team is ready at every turn to work with and for you going forward.
There is new guidance today from the Treasury Department and the IRS to help small/mid-size businesses navigate the new paid sick and family leave tax credits. Today, the Treasury Department posed a detailed FAQ document that provides more information on the refundable tax credits that reimburse small and mid-size businesses for providing their employees paid sick and family leave wages related to COVID-19, as mandated in the Families First Coronavirus Response Act (FFCRA). Press release on the guidance can be found here.
In addition, here is a helpful chart that compares the tools included in each of the three COVID-19 Federal legislative packages enacted by Congress so far. The chart describes how each policy will fight the virus and stabilize the economy.