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FFCRA – ADDITIONAL INFORMATION

The US Department of Labor has supplemented its CORONAVIRUS RESOURCES by issuing several key helps for most public and private employers with fewer than 500 employees:

CARES ACT – INFORMATION

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (complete text) became law on March 27, 2020. Among its benefits for small businesses and 501(c)(3) nonprofits, it: 

  1. Creates a temporary $349 billion Paycheck Protection Program (PPP) that delegates loan decisions to the existing network of lenders that participate in the popular Section 7(a) business loan guarantee program of the Small Business Administration (SBA); 
  2. Adds a new unemployment compensation program for independent contractors and the self-employed, and a refundable payroll tax credit of up to $5,000 for each employee on the payroll (provided that the nonprofit or small business experiences a drop in revenue of at least 50 percent in Q1 of 2020 as compared to the Q1 of 2019); and 
  3. Expands SBA’s Emergency Economic Injury Disaster Loan (EIDL) program in response to COVID-19 (including an “emergency grant,” or “advance,” of up to $10,000 to applicants that must be distributed by the SBA within 3 days and need not be repaid). 

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