President Donald Trump signed into law a historic $2 trillion stimulus package to help business owners and the workers recover from damages caused by Covid-19.
Included in the $2 trillion stimulus package, unknown as the Coronavirus Aid, Relief and Economic Security Act (CARES), are:
- For businesses with less than 500 employees, 501(c)3s, independent contractors and sole proprietors Payroll Protection Program offering loans equal to two and half months of payroll, up to $10 million. The loans would convert to grants if businesses use them to maintain employees, and they may also be used to rehire staff. Businesses, even without a personal guarantee or collateral, can receive loans as long as they were operational on Feb. 15, 2020, and will be able to apply through local and national lenders,
- A refundable payroll tax credit for 50% of wages paid by employers to employees during the COVID-19 crisis,
- Temporary increases to the amount of interest expense businesses are allowed to deduct on their tax returns to 50% of taxable income for 2019 and 2020,
- Allowances to employers and self-employed individuals to defer payments of the employer share of the Social Security tax.
Read the full text of the bill.