Small Business Relief: Keeping American Workers Paid and Employed Act
Written by: Stephen Moorhead
Finally! Some Good News for Small Business!
With the passing of the Keeping American Workers Paid and Employed Act, Congress enacted a common-sense solution to helping small businesses. The Act contains a Paycheck Protection Program that provides $350 Billion for loans to employers with 500 or fewer employees. The loan size equals 2.5 times the company’s one-month payroll. Payroll costs include salaries, wages, and most benefits and taxes. The loans will be available through 800+ SBA certified lenders. Here’s the really good part: if the employer maintains its payroll, then the portion of the loan that is used to cover payroll costs, interest on mortgages, rent and utilities will be forgiven. The program is retroactive to February 15, 2020. Now for the catch, how in the world is the SBA going to keep up with the demand for these loans?
There are also a host of tax reductions for businesses including the ability to use net operating losses and a refundable tax credit based on the payment of employee wages. Some of these are retroactive so amended returns for prior years may be in order. The CPA community will be busy figuring this out.
There are many aspects to this huge piece of legislation. Our team will provide updates on how this Act affects the landscape of small businesses and keep you informed. You can read the bill and get more information from the Small Business Association in the links below.
- Stimulus Package Bill
- Keeping American Workers Paid and Employed Act
- National Small Business Association: COVID-19 Updates & Resources
- Florida Small Business Development Center: Disaster Resources
Stephen Moorhead is the Managing Partner of Moorhead Real Estate Law Group.
He is Board Certified in Real Estate Law by The Florida Bar’s Committee on Education and Legal Specialization and has extensive experience in real estate litigation, real estate development, and all aspects of complex commercial real estate transactions.