Coronavirus Aid, Relief, and Economic Security Act “Phase III”
On March 26, 2020, the Senate passed “Phase III” of the Coronavirus Response Package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act in a 96-0 vote. The $2 trillion Phase III package contains scores of provisions providing relief to large segments of the United States economy decimated by the crisis. Specifically, for NECA Contractors, the CARES Act includes assistance to small businesses in the form of several loan options through the Small Business Administration (SBA).
Paycheck Protection Program: The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses (those with less than 500 employees) so they can sustain their businesses and keep their workers employed.
NECA has compiled several helpful documents to better understand your business options as a result of this new law:
- NECA Fact Sheet – Paycheck Protection Program
- NECA Fact Sheet – Comparison of Loans – EIDL and PPP
- NECA Q&A Regarding PPP Loan Forgiveness and Procedures
- SBA – Paycheck Protection Program Application Form
- US Department of Treasury PPP Loan Guidance for Borrowers
- NECA Summary: Key Provisions of the CARES Act
- US Senate Committee on Small Business and Entrepreneurship: The Small Business Owners’ Guide to the CARES Act
- Small Business Administration: COVID-19 Small Businesses Guidance & Loan Resources
NECA will keep you informed as more information becomes available through guidance issued from federal agencies. The best course of action for NECA Contractors right now is to review the different loan options available and determine the best choice for your company.
NorCal NECA has signed the following MOU’s explaining which fringe benefits are due when using PPP funds to pay for furloughed employees or employees who are not working.
Paycheck Protection Program Loan Forgiveness:
On the evening of May 15, 2020, the Small Business Administration (SBA), in consultation with the Department of Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities. Click here to view the applications and instructions.