On Friday, Marcy 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act, otherwise known as the CARES Act. At $2.2 trillion dollars, it is the largest relief legislation ever passed by Congress. It includes $150 billion in direct aid to states, territories, tribes, and local governments. Most individuals will also receive $1200 sent directly to them, and another $500 for children. Jobless workers will receive unemployment benefits as the CARES Act adds up to 13 weeks of extended benefits and an additional $600 in benefits weekly for up to four months.
Relief for Businesses
The CARES Act establishes a loan program for small businesses, totaling $377 billion and an additional $500 billion lending fund for businesses, cities, and states. Small businesses and non-profits can receive up to $10 million to cover payroll, rent, and utility expenses. Recipients can expect loan-forgiveness for the portion of the loan that covers rent, payroll, and covered utility payments.
Some states are also following suit and providing economic relief to businesses impacted by covid-19. The Minnesota Department of Employment and Economic Development (MN DEED) oversees a $330 million emergency loan fund to assist Minnesota businesses impacted by this global pandemic. Impacted businesses can receive interest-free loans that range from $2500 to $35000 that can be paid back over 5 years.
Another state providing relief to their residents is Washington State. The Washington State Department of Revenue has tax relief measures in place for businesses impacted by the pandemic. Local governments, including the City of Bellevue, are deferring tax payments for certain small businesses until at least October 2020. State and Federal loans and grants from large companies are available for some small businesses. These include grants from Facebook, Amazon, the Seattle Foundation, and the Governor’s Strategic Reserve Fund which gives up to $5 million to small businesses to help prevent closures due to the novel coronavirus.
Attorneys Ready to be of Service
The attorneys at Mohamed Zain, LLP are ready to be your partner in this recovery effort. This global pandemic has devastated many and we stand ready to help you navigate the local, state and federal resources that are now available. Our experience includes helping businesses with employment and tax matters. The attorneys at Mohamed Zain, LLP can advise your business on:
· Identifying grants, loans, and other resources that may be available to your organization.
· Documentation of your business expenditures and so that you may qualify for loans and grants.
· New labor laws.
· Tax ramifications of the new stimulus laws.
We also understand that with the “shelter-in-place” laws, many businesses are unable to afford their rent. We have expertise in landlord-tenant law and have experience advising both commercial tenants and landlords on matters such as non-payment of rent. For further assistance, call the attorneys at Mohamed Zain, LLP.