The COVID-19 health crisis has significantly reshaped the business landscape. The convergence of forced business closures and dwindling demand for services has forced many to make difficult business decisions.

The impact of the COVID-19 emergency has had a widespread impact on individuals, families, and businesses. The implementation of forced business closures and shelter in place orders have left many companies facing surreal challenges. With limited or no opportunity to generate revenue, businesses have been forced to terminate or furlough employees leaving many without jobs and income to pay essential bills.

This is an update to our previous post published on April 3, 2020, regarding the Paycheck Protection Program (PPP). Since then, the Small Business Administration has announced that the interest rate is set at 1%, and the calculation of average payroll costs is based on gross payroll without deductions for taxes.

The CARES Act is designed to stimulate the U.S. economy through various tax credits, and one of the resources available to qualified businesses is a loan opportunity called the Paycheck Protection Program (PPP).

The bipartisan $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act is the single largest, and the most wide-ranging, potentially game-changing stimulus package ever created by the federal government.

The swift and decisive actions taken by both state and federal governments in light of the COVID-19 situation have had a profound impact. Many believe the economy has entered a period of contraction with a recession likely if broad financial support, including loans, grants, and other relief, is not offered.