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Resources Available for Catering and Events Businesses under the New CARES Act

The President just signed the CARES Act, a $2 trillion relief package for families and businesses affected by the pandemic. Overall, there are several provisions for business, individuals, and families who need cash to stay afloat until we get back to business.

What’s included for small businesses:

A summary of the Paycheck Protection Program under the CARES act:

  • $377 billion in federally guaranteed loans to small businesses with no more than 500 employees
  • Eligible independent contractors and sole proprietors also considered a qualifying business
  • Can borrow 2.5 times their monthly payroll expenses, up to $10 million.
  • Applicable uses for the loan include:
    • qualified payroll costs
    • rent
    • utilities
    • interest on mortgage and other debt obligations
  • No personal guarantee or collateral will be required to receive funds
  • Payments of principal, interest, and fees will be deferred for at least 6 months
  • Interest rates are capped at 4%
  • Relief will be provided for those with existing SBA loans. The SBA will pay the principal, interest, and associated fees on certain pre-existing SBA loans for 6 months
  • Emergency Economic Injury Disaster Loan (EIDL) will also be available for borrowers seeking an immediate influx of funds, businesses can receive a $10,000 emergency advance within three days after applying for an EIDL grant
  • Loan forgiveness is available for funds used to pay 8 weeks of payroll and other qualified expenses.

Additional provisions provided to business under the new act include:

  • Refundable payroll tax credit for 50% of wages paid by employers during COVID-19. To be eligible for this program, employers must prove that operations were fully or partially suspended, due to a COVID-19 related shut-down order.
  • Delay employer payroll taxes to be paid by December 31, 2022

Loans will be available through SBA and Treasury approved banks, credit unions, and some nonbank lenders. You can find an approved lender through SBA’s Lender Match. Additional resources and instructions are also listed below:

What’s included for laid-off or furloughed event professionals:

The new act includes several provisions for those furloughed and laid off, the benefits will also benefit “gig-workers” or self-employed individuals.

  • The new CARES act will offer jobless Americans can get $600 a week and 13 weeks of unemployment
  • Participants in eligible retirement plans can make withdrawals in 2020 of up to $100,000 from their plan benefits penalty-free.

The CARES Act will also provide for recovery rebates to most Americans of up to $1,200 ($2,400 for joint filers) for US taxpayers.

  • Amounts are increased by $500 for each child and phased out for taxpayers making $75,000 ($150,000 for joint filers, and $112,500 for heads of household).
  • No action is generally required to claim the rebates. The IRS will use your 2019 tax return if filed, or your 2018 return.
  • You can calculate how much you will receive using this stimulus payment calculator

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