The CARES Act, signed by President Trump on March 27, authorizes up to $349 billion to the Department of Treasury to create the Payroll Protection Program and it allocates $10 billion to the Small Business Administration Economic Injury Disaster Loan program. These small business assistance loan programs are designed provide emergency relief that enables employers to retain their employees and to pay necessary operating expenses. On March 31, the Department of Treasury and the Small Business Administration provided clarification on both of these emergency loan programs. You can find the guidance here:
- https://home.treasury.gov/news/press-releases/sm961
- https://home.treasury.gov/cares
- https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
The Families First Coronavirus Response Act (FFCRA), signed into law on March 18 provides eligible employers refundable tax credits that reimburse them for the cost of providing emergency paid sick leave and emergency paid family leave wages to their employees for certain qualifying leaves related to the coronavirus pandemic. Yesterday, the IRS issued guidance on the payroll tax credits under the FFCRA, which can be found here:
We will provide further updates as additional guidance is published in the coming days and weeks.
