The CARES Act and How It Impacts You

Mar 31, 2020

Both manufacturers and integrators are eligible for SBA loans for two months of payroll, and repayment will be forgiven if the rules are followed. 

The $2 trillion Phase III Stimulus package couldn’t have come soon enough for many small businesses, including both manufacturers and integrators, affected by the coronavirus economic shutdown. 

What’s in the Stimulus Package for Small Businesses?

The CARES Act sets aside hundreds of billions of dollars in available funds specifically for small businesses to obtain loans from the federal government. The program has $350 billion in loans that will be specifically administered by the Small Business Administration (SBA). This $350 billion “Paycheck Protection Program” is separate from the $50 billion in SBA loans that were put into law several weeks ago as part of the Phase II Stimulus package. Moreover, there is another $454 billion that will be administered by a new lending agency managed by Treasury Secretary Stephen Mnuchin.

Use This Calculator To Estimate Your Loan Forgiveness 
(it’s towards the bottom)

Who Qualifies and How Do You Get a Loan? 

Any small business with fewer than 500 employees is eligible for a loan. To obtain a loan, qualifying small businesses are asked to simply go to their local FDIC-insured bank. Indeed, speaking to reporters yesterday, Mnuchin said small businesses in many cases will be able to walk out of the bank with the money in hand in one day. In an effort to eliminate red tape, there is no hefty government website application. The loans are not like SBA loans in the past that were linked to natural disasters. Businesses that are facing the prospect of bankruptcy from the coronavirus outbreak will have a separate program in which they can participate. 

How Much of a Loan Can You Get? 

Small businesses can obtain a loan that covers two months of payroll, not exceeding $10 million. Payroll for employees who earn more than $100,000 per year is not covered. Portions of the loans can also be used for debt obligations, mortgage or rent payments, utility payments, and payroll support. The loans themselves must be secured for a term of no longer than 5 years. Businesses will be eligible for the loans through December 31, 2020. 

Contact Your Local Bank and Tax Professionals To Discuss Your Options

Is the Loan Forgiven? 

While the loan is in place, employers must maintain the same employment level within their company as they had on March 13, 2020. In addition, there are limits on the amount of compensation that can go to the owner of the company up until March 1, 2022. 

But the law takes its one step further by declaring that small businesses that either maintain their employees during this crisis or rehire those employees will have their loans fully forgiven by the federal government. 

Canadian Benefits

Canada has proposed a program for its citizens during this turbulent time. It includes a doubling of the payroll exemption for businesses from $490,000 up to $1 million in payroll; a suspension of any penalties related to non-payment of sales taxes for alcohol, tobacco, fuel, and other items until August 31; a special tax credit for business investment; and suspension of property tax reassessments 

During this time, we’re here to help you. Find free resources on COVID19 on our resource page or join the conversation on Facebook

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Macala Wright

Macala Wright

Macala Rose Wright is a wellness expert, writer and researcher who specializes in health, wellness, and consumer behavior. Her expertise has been published in the New York Times, Wall Street Journal, San Francisco Chronicle, and many more publications. When she’s not writing about consumer behavior or food, she can be found scouring for deals in antique shops or on the back of her horse. You can follow her on Instagram @Macala or connect with her on Linkedin at

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