We’ve received many questions over the past few days, and with some provisions of the recently passed legislation kicking in today and the coming days, we wanted to take some time to provide an overview and some tools for decision-making.
We’ve provided an initial summary here. In this post, we’ve included a PDF link to a chart answering the most commonly asked questions regarding the new legislation.
That said, we’re here to help. Please reach out to us with questions or data-requests related to anything we discuss below.
Economic Impact Payments (Checks to Individuals)
Economic impact payments are coming, and little is required of you in order to ensure that yours will arrive soon.
Please see the summary in the following IRS link for more details:
Economic impact payments – What you need to know
Expanded Unemployment Insurance
The rules underlying unemployment insurance claims have been loosened. Individuals can now receive benefits for several additional circumstances related to COVID-19, and in most cases, the benefits received are increased.
Additionally, self-employed individuals are eligible to apply.
For more information, see the following:
IDES COVID-19 and Unemployment Benefits
IDES Federal Stimulus Package Unemployment Benefits
Relief Provisions for Businesses
In our minds, the three most important and urgent incentives available are:
SBA Paycheck Protection Program
FFCRA Payroll Tax Credit
Employee Retention Credit
And these are some of the most important questions that relate to these incentives:
What are the provisions, and what are the need-to-know details?
Can I combine relief provisions?
And if not, which one is right for me?
To answer these questions at a high level, we’ve put together the following table:
COVID-19 Incentives Chart
For more information on any of the incentives in the table, we’ve compiled the best list of links we’ve been able to find on them.
SBA Paycheck Protection Program and the Application:
Paycheck Protection Program (PPP) Information Sheet
Paycheck Protection Program Application Form
FFCRA Payroll Tax Credit
Employee Retention Credit
IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19
FAQs: Employee Retention Credit under the CARES Act
Additional Thoughts
We encourage all small business owners to contact their lenders to discuss all available payment options if cash flow is a concern during this time, especially if some of the government incentives aren’t viable options for the business or don’t adequately soften the blow.
Additionally, we encourage all businesses to maintain constant contact with their vendors to a) determine whether they’re willing to offer any relief and b) maintain great vendor relationships during a time that’s certainly trying for them, as well.
We also, again, encourage you to reach out to us with any additional questions you may have regarding the incentives listed here or in our original summary.
Blaine Adams
(309) 472-3093
blaine.adams@adams-consult.com