Weathering COVID-19: How the CARES Act helps businesses maintain payroll

Written By Sarah Rodehorst

‍Businesses are experiencing significant revenue loss due to the COVID-19 pandemic, and many are weighing their options.‍

Many businesses struggle with how to weather the COVID-19 storm. Before laying off or furloughing your employees, consider maintaining payroll and applying for a loan under the new Paycheck Protection Program, one of the largest sections of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The ideal solution is to offer your employees paid leave and, thanks to the CARES Act, many businesses can qualify for an emergency loan that can be forgiven when used to maintain payroll through June.

Does your business qualify for the Paycheck Protection Program?‍

Businesses can get a loan without a personal guarante or collateral as long as they were operational on February 15, 2020. Below are some of the types of businesses that may qualify:

  • Small businesses with fewer than 500 employees

  • Select types of businesses with fewer than 1,500 employees

  • 501(c)(3) non-profits with fewer than 500 workers

  • Some 501(c)(19) veteran organizations

  • Self-employed

  • Sole proprietors

  • Freelancers

  • Gig economy workers

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To learn more about the Paycheck Protection Program, visit the U.S. Chamber of Commerce.

Sarah Rodehorst https://www.linkedin.com/in/sarahrodehorst/
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