Congress may have passed a massive stimulus package with the best intentions, but we know all the issues on the ground are far from solved. Rapid implementation of the new CARES Act provisions has not been seamless, as government agencies and banks scramble to stand up new programs and get cash in the hands of those that need it. ACMA continues to update our resource page to direct you to the most recent information straight from relevant federal sources.
Despite initial hiccups, companies in our industry and others are already successfully tapping into new programs. Difficulties on the banking side have made experiences uneven and some of you may have been caught up in it. If you are having difficulties accessing stimulus loans and other programs, please let me know. While ACMA cannot write loans, we remain in close contact with federal leaders that need to understand real world experiences.
While the CARES Act includes many new federal relief programs, a few key ones should be of interest to most ACMA members:
• Paycheck Protection Program: For businesses under 500 employees, the Paycheck Protection Program loans that cover employee salaries and benefits will be forgiven if you maintain your full staff. Congress is already moving this week to add an additional $200 billion to this program to meet demand. If you are interested in this program but have not yet applied, we encourage you to do so quickly.
• Economic Injury Disaster Loans: These loans are available directly from the SBA that can be used for a wider range of expenses. While these loans are not otherwise forgivable, SBA offers a $10,000 forgivable advance.
• Employee Retention Credit: For companies that do not receive SBA loans, this tax credit is now available to offset up to 50% of wages and healthcare costs through December 31, 2020. Review the IRS’s Frequently Asked Questions for full conditions and details.
I will be going deeper into these relief programs and answer your questions, in our webinar this afternoon, see below for more information. We also know it helps to hear from people in similar situations, so we’re bringing you a panel of CEOs to explain how their companies have tapped into these and other new programs. I hope you’ll join us. Our previous webinar on this topic is also available on our resources page.
If your company is too big for SBA programs, but too small to access capital markets, a program is in the works for you too. The US Treasury is in the process of standing up a new federal lending program targeting imperiled medium sized companies left behind. ACMA will provide more information as it becomes available.
As I close, I’ll remind you ACMA remains member driven. We hope these emails, webinars, and online content are helping you navigate this complicated time and like everyone right now, we’re learning as we go. If you have suggestions on how ACMA can help members like you, please let me know. Stay safe and healthy.
Director, Government Affairs
Latest ACMA Resources:
Webinar: ACMA’s COVID-19 Ongoing Webinar Series: ACMA Discussion Forum on Federal COVID-19 Relief Programs for Businesses
When: Thursday, April 9, 2020 3:00 pm EDT
FREE for ACMA members
Latest Industry Resources:
• SBA Relief Options – including Paycheck Protection Program and more
• Small Business Guide to the Cares Act with FAQs on programs to keep workers employed
• Overview of full federal response activities
• Updated CDC recommendations on wearing facemasks in public
• Resources to donate PPE and other equipment
• Click Here For Additional Resources.