We are in unprecedented times but thankfully there are a lot of options available to support both you and your business during the COVID-19 pandemic. Here at MCK, we want to make sure that you know that we are here to support you and help you navigate the commonly asked questions around tax, business, and employment laws and relief. Here’s a quick summary of some of the resources available to you.
1. CARES Act – In brief, the CARES Act provides a number of things including direct payments to individuals, extended unemployment insurance program and eligibility, the option to delay payment of a portion of 2020 payroll taxes to 2021 and 2022, waiving the 10% early withdrawal penalty for using retirement funds for COVID related purposes, and $350 billion in small business relief among other things. A full break down can be found via the PDF on this page.
2. Coronavirus Emergency Loans – The CARES Act allocated $350 billion in relief for small businesses and was recently infused with an additional $310 billion to prevent layoffs, help continue to pay mortgages, leases and utility payments and more. A more in-depth guide to these loans and eligibly can be found here.
3. Paycheck Protection Program – This program is designed specifically to help businesses keep their employees on the payroll and help pay loans, mortgages, and utility payments. The loans will be forgiven if all employees are kept on the payroll for eight weeks and the loan money is used for only payroll, rent, mortgage interest, and utilities. More information on the program can be found here and you can apply for the program here.
4. FFCRA Act – The FFCRA was passed to require employers with fewer than 500 employees to provide paid and sick leave to employees who are forced to stay home due to being quarantined or caring for a sick family member. Additionally, Tax Day was moved to July 15 to give people extra time to pay their taxes. More guidance can be found here.
5. Illinois Downstate Small Business Stabilization Plan – This plan reallocated $20 million to help stabilize and support small Illinois state businesses. It is only available for businesses who employ 50 or less people and makes funds available for 60 days or working capital up to a grant ceiling of $25,000. These funds are supposed to support businesses that were deemed non-essential by the stay-at-home order. For more information and to see if you qualify, see this page.
6. Emergency Small Business Grants and Loans Assistance – This program offers small businesses low interest loans of up to $50,000. Only businesses located outside of the city of Chicago, with 50 or less employees, and that make less than $3 million in revenue are eligible to apply. See more about the loans here.
Things are shifting and changing every day as we navigate COVID-19 but we are in this together. If we can be of any help, contact our offices today. We’re here for you.