COVID-19 Stimulus Legislation: Funding Opportunities for Your Business
The United States is in the final stages of delivering an historic emergency stimulus package to assist U.S. businesses and families. This significant stimulus effort has come in three phases so far, and legislators are currently negotiating a fourth wave. Already the U.S. government’s economic response to the COVID-19 outbreak more than doubles the cost of the Great Recession stimulus legislation in 2009. The overall response to this disaster may ultimately be larger than the New Deal programs and all the legislative efforts to save the U.S. economy during the Great Depression.
In response to the COVID-19 outbreak devastating families and businesses across the country and around the globe, the Federal government’s succession of stimulus bills will likely affect all sectors of the U.S. economy. To make this complex legislation a bit more accessible for small business owners and concerned citizens, Leake & Andersson is pleased to share its detailed summary of the three bills with particular focus on provisions in the $2 billion, 880-page CARES Act. SEE COMPLETE CARES ACT SUMMARY HERE.
Additionally, Leake & Andersson attorneys, Edward T. Hayes, Partner and expert in Federal legislation and international trade, and Alex B. Johnson, associate and former U.S. Senate Small Business Committee staffer, created a guide for small businesses to reference as they navigate the CARES Act during this unprecedented time of uncertainty. These Title I provisions appropriate $360 billion to the Small Business Administration (SBA) to fund the Paycheck Protection Program (PPP) to keep workers on payroll and expand the Economic Injury Disaster Loan (EIDL) program for immediate working capital. SEE CARES ACT SMALL BUSINESS REFERENCE GUIDE HERE.
Note that Congress first writes and passes the legislation, and then comes the interpretation and Administration execution. Since the bills passed, the Administration has been publishing almost daily regulatory guidance that further define the finer details of these programs. As of April 7, 2020, Congress announced that it plans to add another $200-$250 billion to the SBA’s PPP to meet unprecedented surge demand. Leake & Andersson will be following the process for you. With Mr. Hayes’s expertise, Leake & Andersson has advised numerous clients on their options navigating the small business opportunities in the stimulus legislation and also led three webinar presentations with hundreds of participants. We hope this stimulus summary and small business reference guide are helpful to small businesses approaching the PPP and EIDL opportunities.