The Coronavirus Aid Relief and Economic Stability (CARES) Act Program was signed into effect on March 27th, the program includes an overwhelming amount of information. As a business owner, we recognize the importance of the Act to you and want to share some of the key points.


On Friday, March 27th the President signed the Coronavirus Aid, Relief and Economic Stability (CARES) Act, a $2 Trillion stimulus and aid package passed by Congress to offset the economic damage inflicted by the COVID-19 pandemic.  The Act covers individual economic relief such as a recovery rebate to most taxpayers and expanded unemployment insurance.  In addition to individual relief, there are many important programs for small businesses.  The CARES Act expands the availability of small business loans under section 7(a) of the Small Business Act to include payroll costs, mortgage interest, rent, utilities and interest on certain other debt.  Up to 100% of these loans, subject to certain restrictions, may be forgiven.

As information about these programs continues to evolve, we want to be sure you have access to the latest updates.  Below please find links to current details:

This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program.

This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.

Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.

Unemployment Compensation – Extra $600: Under the CARES Act, unemployment insurance expansion provides workers unemployed due to COVID-19 with an extra $600 per week for four months on top of state benefits. State Departments of Labor and Industry are to pay regular compensation to individuals in amounts and to the extent determined by state law, plus an additional $600 in “Federal Pandemic Unemployment Compensation.” States are to waive the traditional one-week waiting period. Please Note: This UC coverage does not apply to those individuals who do have an option to telework or who are receiving paid sick leave or other paid leave. Employers – your UC rates will not be affected by your employees or you needing to draw UC as a result of COVID-19 related issues.

Unemployment Compensation for Self-Employed/Contractors: As of this writing, the application process has not opened yet – please do not try to apply through the current on-line process. This is a separate process from the regular UC on-line application process.

State Senatorial links:

State Coronavirus Information:

Frequently Asked Questions

  1. Who is Eligible?

Generally, any business (including 501(c)(3)s) with fewer than 500 employees is eligible for a loan under the Paycheck Protection Program.

  1. What is the Maximum Amount That Can be Borrowed?

The lesser of (A) $10 million or (B) 2.5 times the average total monthly payroll costs of the business concern.

  1. Are Borrowers Required to Provide Collateral or a Personal Guarantee?

No. Collateral and personal guarantee requirements are waived for Paycheck Protection Program loans.

  1. What is the Interest Rate?

The interest rate cannot exceed 4%.

  1. How Much is Eligible for Forgiveness?

Up to 100% of the Paycheck Protection Program loans may be eligible for forgiveness; however, decreases in employee headcount or wages may reduce the amount eligible for forgiveness.

This is a general overview, for specific information and how the Act applies to your specific situation, please talk to your lawyer or accountant.

Additional Information and Resources:

Small Business Administration guidance and resources – eligibility and overview of programs

Business Insurance FAQ’s

Families First Coronavirus Response Act

For insurance questions, don’t hesitate to contact Gannon Associates Insurance at 844-426-6667.  Your health and safety are our highest priorities.

If you have any questions related to your particular situation, please contact your lawyer and/or accountant. This is just a brief overview.