How the CARES Act Helps Small Businesses in Ohio
Last week, Congress passed and President Trump signed into law the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is providing unprecedented economic and health care relief to ensure small businesses in Ohio get the support they need to get by during the ongoing coronavirus crisis. These provisions are designed to help ensure that families and employers can stay afloat during this public health crisis and that, once it subsides, Ohio will be able to quickly get its economy back up and running.
The CARES Act rescue package will help small businesses across Ohio stay afloat during the coronavirus pandemic by:
- Providing $350 billion in low-interest loans for companies with under 500 employees through the Small Business Administration.
- Small businesses are eligible to receive up to $10 million under this program.
- Importantly, if a small business uses the loan for payroll, rent, or mortgage payments, it is completely forgiven, effectively making it a grant.
- The application for borrowers can be found HERE.
- Including $500 billion in immediate tax relief for businesses of all sizes, including provisions such as payroll tax deferral and the ability to immediately monetize tax losses. Also included is an employee retention credit for businesses that keep employees on their payroll during a suspension of their business operations.
- These provisions allow Ohio businesses to prioritize keeping employees on payroll and thus minimize painful layoffs.
- The provisions also provide immediate cash flows to help businesses, and in particular small businesses without cash reserves, stay afloat during the months ahead.
- Providing billions of dollars in support for addressing the coronavirus pandemic to ensure businesses can once again open their doors.
- That includes $150 billion to health care providers and hospitals nationwide to accelerate the public health response, increase testing, and save lives.
- And it includes $4.3 billion to support the CDC and state and local health departments to support the development of better testing and antiviral therapies that can help alleviate the worst symptoms of coronavirus to bring about a quick close to this pandemic.