Copy

CARES Act Update

View this email in your browser

$2 Trillion Stimulus Package Offers Relief to Small Businesses

Today, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, sending $2 trillion of stimulus money into the pockets of individuals and businesses alike. To help small businesses directly, the Act sets aside nearly $400 billion in loans and grants and offers tax credits for businesses that keep their employees on their payroll despite economic hardships.   

Small Business Loans

The CARES Act makes loans available for up to $10,000,000 for certain businesses without many of the typical SBA requirements. The loans can be used to cover payroll costs, healthcare benefits, salaries, mortgage interest or rent payments, utilities, and interest on other debt obligations. Interest rates for the loans are capped at 4% and payments may be deferred for no less than 6 months. 

Congress has granted broad loan forgiveness terms for costs incurred and payments made up to the amount of the loan for payroll costs, mortgage interest, rent, and utility payments. As you have likely heard, however, the Act penalizes employers for terminating employees, or cutting wages for an employee more than 25%. These penalties reduce forgivable loan amounts in proportion to how many employees or how much wages are cut below 25%. 

The starting number of employees is based on either (1) average number of full-time employees per month from February 15, 2019 to June 30, 2019; or (2) the average number of full-time employees per month from January 1, 2020 to February 29, 2020. This allows employers to limit or eliminate loan forgiveness penalties.


Tax Credits

To incentivize businesses to retain employees, the Act also grants tax credits against quarterly employment taxes for half of all wages and qualified health plan expenses the employer paid to its employees up to $10,000 per employee. The credits are available for businesses that have either had to fully or partially suspend operations due to government stay-at-home orders during applicable quarters.
 

Like with the FFCRA, the CARES Act is subject to modification in the coming days and weeks as the responsible agencies issue guidance and regulations. You should talk to your lawyer if you’re interested in taking advantage of these loans or tax credits. 


We’re highly experienced, we’re efficient, we’re ethical – we get things done. We are proud of the results we’ve achieved for our clients. We invite you to browse our website for additional details about who we are and what we’ve accomplished. Then call us for a consultation to see how we might be of service to you.

Advertising Material Only
 
What would a lawyer Newsletter be if it didn’t contain a disclaimer?
 
We appreciate your interest in GKWW and that you have taken the time to read this Newsletter.  If we have represented you in the past, we thank you for your trust.  If you are considering working with in the future, we would love to meet with you and see if we can work together.  That said, our ethical rules require us to identify this Newsletter for what it is—advertising material.  We aren’t specifically seeking a case or giving advice on potential cases that you have.  All cases are different, so we’d need to sit down with you and evaluate if we could help you. Our past successes don’t guarantee or predict future results, but we’ll work hard to try to have success in the future.
 
If you’re getting this Newsletter in a different state than Illinois, there may be different rules relating to this Newsletter.  We have tried to comply in a general way with common rules.
 
Finally, if you’re sick of receiving this Newsletter, let us know and we’ll take you off of the list.  Better yet, drop us a line and let us know what you disliked about it.  We have only sent a few of these and we want to provide information that is useful to those who invest their valuable time in reading it.
Visit Our Website
Copyright © 2020 GKWW Law, All rights reserved.
We send special updates to our clients and partners who have expressed interest in staying up to date with the latest legal news.

Our mailing addresses are:
GKWW Law
53 W. Jackson Blvd | Ste 950 | Chicago, IL | 60604
1755 Park Street | Ste 114 | Naperville, IL | 60563 
N1204-08 State Rd. 120 | Lake Geneva, WI | 53147

Email: Questions@gkwwlaw.com 

Tel: 312-362-0000 | Tel: 630-579-0635

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list