The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed Congress on March 27, 2020 and provides $2 trillion in benefits to US consumers, businesses, and institutions. Our team has dissected this new law and have identified several areas in which we believe our clients and their organizations hard hit by this crisis can seek assistance. As this healthcare and economic crisis has been indiscriminate, we have proactively been reaching out to non-profit and business owner clients with specific opportunities in which they can seek some aid.

While details of these programs are still evolving, we are providing a summary outline of three specific programs that we see a use for with some of our Non-Profit and clients that own businesses. We would encourage those interested and eligible to apply early as well as consider using one of the other programs available that may have high greater chance of accessing. These programs include:


I. Paycheck Protection Program Loans:

Provides cash-flow assistance through federally guaranteed loans to employers who maintain their payroll during the COVID-19 crisis. The loans would be forgiven for those that retain their employees throughout the emergency period. The program offers forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and some non-profits can apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020. The U.S Treasury and SBA have already experienced very high levels of interest and anticipate that less than 25% of non-payroll costs will be forgiven.


II. Small Business & Non-Profit Payroll Tax Provisions:

Provides refundable payroll tax credit for 50% of wages paid by eligible employers who have experienced economic hardship during the COVID-19 crisis. Credits are available to both small business and non-profit organizations whose operations have been partially or fully suspended due to state or federal to limit operations.


III. Economic Injury Disaster Loans (EIDL)/ Emergency Economic Injury Grants (EEIG):

Provides immediate grants of to $10,000 within three days to small businesses as well as private non-profits who have been adversely impacted by the current health crisis.  Furthermore, low interest rate loans are available for up to $2mm carrying deferred interest and principal payment features. To receive the non-refundable grant, you first must apply for an EIDL loan.


Our team has been actively reaching out to our clients, educating them on these programs, assisting in identifying if they qualify, and calculation aid eligibility. Clearstead has partnered with our network of banking institutions to assist clients in the application process or simply to make a warm hand off. Should you have any questions or need assistance understanding the CARES Act, please do not hesitate to contact Clearstead.




Information provided is general in nature, is provided for informational purposes, and should not be construed as investment, tax or legal advice. These materials do not constitute an offer or recommendation to buy or sell securities. The information provided is from public sources and data available at the time the information was written. Any information provided is subject to change at any time. Clearstead disclaims any liability for any direct or incidental loss incurred by applying any of the information provided. You should consult with a professional before making any investment, tax or legal decisions.
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