CARES Act: What Individuals & Families Should Know

30th March / 2020
CARES Act: What Individuals & Families Should Know

This is the second of a two part communication regarding the major provisions included in the CARES Act that affect small businesses. The first focused on items 1 and 2 below and can be found on our website. The purpose of this communication is to analyze in greater detail some of the key provisions of the Act that relate to small businesses so that you may gain a greater understanding of how they may impact you and your business interests.

There are four major provisions that are likely to have an immediate economic impact on small business. The CARES Act aims to afford small businesses with welcomed cash flow assistance in four primary ways:

  1. The Paycheck Protection Program (“PPP”) as part of the Small Business Administration (“SBA”) loan program,
  2. Emergency Economic Injury Disaster Loan (“EIDL”) grants as part of the existing SBA loan program,
  3. Delay of payment of employer payroll taxes, and
  4. Employee Retention Credit for employers subject to closure due to COVID-19

This communication will cover numbers 3 and 4 above. Additionally, an analysis of the employer tax credits and related expansion of family medical and sick leave contained in the Families First Coronavirus Response Act (“FFCRA Act”) effective March 18, 2020 is warranted given those provisions closely tie in with the payroll tax deferral and credits in the CARES Act.

Given the novelty and complexity of these provisions, it is likely that this summary may have generated more questions than answers.





Important Disclosures:

Information was obtained and collected from a variety of public resources. We believe this information provided here is reliable, but do not warrant its accuracy or completeness. It is provided for informational purposes only, and should not be construed as legal or tax advice. Laws may change pursuant to the administration’s legislative agenda. Always consult an attorney or tax professional regarding your specific legal or tax situation. TFO Phoenix, Inc. is not engaged in the practice of law.

TFO Phoenix, Inc. does not provide any guarantee, express or implied, that the information provided in any of the links are accurate or timely, and do not contain inadvertent technical or factual inaccuracies.

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