The US Government has passed the $2 Trillion CARES act, which is the largest relief bill in history.  If you own a small business or run a small organization of less than 500 employees, there are significant benefits in this bill. As of April 21, 2020, it was voted to increase the funding available for the PPP Loan through the Payment Protection Program Increase Act 2020.

Above, Don Harkey visits with James Lea from Sanford, Lea, and Associates to discuss expense review and key financial decisions that have to be made during a crisis. 

The provisions that will impact most small business owners and organizational leaders directly include the following:

Payroll Protection Plan (PPP)

This loan is designed to help cover 2 months of payroll, rent, utilities, benefits, and interest payments.  The loan terms are reasonable, but the real kicker is that this loan is forgivable if you meet certain criteria.  The Small Business Administration put out a document outlining the basics of the PPP

To Maximize Paycheck Protection Program Loan Forgiveness, review this fact sheet.

SBA Disaster Loan

Disaster loans are available at very low interest rates (3.75%) and long terms (30 years) to help cover additional expenses.  These loans are not forgivable, but can be up to $2MM.  Go to for more information and to apply.

Unemployment Benefits

If you do need to layoff employees, there are programs already in place before the CARES Act to help.  These programs offer larger than normal unemployment benefits when employees are partially laid off (ex: 20-40%).  Instead of cutting people altogether, you might be able to reduce more people’s pay temporarily without having a huge impact on their income.  Check with the unemployment office in your state for details about what is available.  

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