Several laws and regulations in response to the COVID-19 outbreak have been passed. Some of them are as follows: Coronavirus Preparedness and Response Supplemental Appropriations Act, Families First Coronavirus Response Act, and Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act comes with a stimulus package particularly geared to small businesses affected by Covid-19 outbreak, providing relief to small businesses under a number of various SBA programs. For small business owners with existing SBA 7(a) and SBA 504 loans, SBA will pay (not defer) six months of principal and interest payments. After the six-month period where SBA will pay the loans, small business owners will still have the ability to request deferments, if needed, up to 6 months for SBA 504 loans and SBA 7(a) loans not sold on the secondary market and up to 90 days for SBA 7(a) loans that are sold on the secondary market.
While the Coronavirus Preparedness and Response Supplemental Appropriations Act provided additional funding to various governmental agencies to assist with the response to the COVID-19 outbreak and the Families First Coronavirus Response Act introduced emergency paid sick leave and other benefits, the CARES Act has provided the most sweeping changes by Congress, including the largest ever stimulus package of $2 trillion. The loans offered to small businesses through the SBA, the pandemic emergency unemployment assistance, and various revisions to the tax code, including direct payments of $1,200 per person to taxpayers, comprise a few of the ways in which the U.S. government has responded to the COVID-19 crisis.
As John Onal & Associates PC, we have prepared this presentation entitled “New Laws in Response to the COVID-19 Outbreak” to summarize the new benefits to businesses and individuals, and our attorneys have already presented it to the community in a video conference hosted by the American Turkic Business Council. Please enjoy the slides, complete with links to more detailed information throughout our website: