The CARES Act has officially passed in the Senate and a vote is expected in the House on Friday, March 27th. If the Bill is signed into law as expected, $350 billion will be dedicated to preventing layoffs and business closures while workers stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used to cover payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
The CARES Act program covers businesses with 500 or fewer employees, unless the covered industry’s SBA size standard allows more than 500 employees. To identify the size standards for your industry, use the SBA’s Size Standards Tool (https://www.sba.gov/size-standards/).
The size standards are tested on an affiliate basis—aggregating the number of employees for all entities under common control—towards the size test. Affiliates of the applicant may include parent companies, subsidiaries, and any other related party with at least 50% ownership or contractual control.
In addition to meeting the numerical standards, your business must:
• Be a for-profit business of any legal structure
• Be independently owned and operated
• Not be nationally dominant in its field
• Be physically located and operate in the U.S. or its territories.
Madeline Person, Attorney )(NC) BridgehouseLaw LLP | photo PR Newswire