2020 CARES Act Assistance for Small Businesses

Below you’ll find some of the Assistance for Small Businesses included in the 2020 CARES Act.

Paycheck Protection Program:

  • The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. 
  • Small businesses and eligible 501(c)(3) nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
  • Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
  • This program offers up to eight weeks of payroll forgiveness, no Small Business Administration (SBA) fees, and least six months of deferral with maximum deferrals of up to a year. The borrower will owe money when the loan is due if they use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. The borrower will also owe money if they do not maintain their staff and payroll.
  • Businesses impacted by COVID-19 can apply for loans through June 30, 2020, and loans are retroactive to February 15, 2020, in order to help bring back workers that may have already been laid off.
  • For more information visit SBA’s Paycheck Protect Program website.

Small Business Debt Relief Program:

  • This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible.
  • Under it, SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020 and will pay the principal and interest of current 7(a) loans for a period of six months.
  • This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.
  • For more information visit the SBA Debt Relief website.

Economic Injury Disaster Loans and Loan Advance Grants:

  • The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
  • These grants provide an emergency loan advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19. This loan advance must be used for authorized costs and will not have to be repaid.
  • To access the advance, you first apply for an EIDL and then request the advance.
  • Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
  • The advance may not exceed $10,000 and must be used for authorized costs, but is otherwise not repayable if the EIDL Loan is not approved.
  • For more information visit SBA’s Economic Injury Disaster Loan Emergency Advance website.

Employee Retention Tax Credit:

  • The CARES Act created a new employee retention tax credit for employers who are closed, partially closed, or experiencing significant revenue losses as a result of COVID-19.
  • The Employee Retention Credit for Employers Subject to Closure or Experiencing Economic Hardship provides a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis. 
  • This new employee retention tax credit is a 50% tax credit for the first $10,000 of compensation, including the employer portion of health benefits, for each eligible employee. 
  • Compensation does not include paid sick or family leave for which the employer is reimbursed under the Families First Coronavirus Response Act.
  • The credit only applies to wages paid after March 12, 2020 and before January 1, 2021.
  • The credit is not available to employers receiving assistance through the Paycheck Protection Program (PPP). 
  • The US Chamber of Commerce prepared a Guide to the Employee Retention Tax Credit.
  • For more information visit the IRS site, FAQs: Employee Retention Credit under the CARES Act.

Delay of Payment of Employer Payroll Taxes:

  • The employer side of certain payroll taxes are deferred through the end of 2020. 
  • 50 percent of certain self-employment taxes are deferred through the end of 2020 for independent contractors.
  • Deferred taxes will not become due until end of 2021 and end of 2022, with 50% of the liability being paid at each date. 
  • Any business that does not have a loan under the Paycheck Protection Program (PPP) is eligible for the payroll tax deferral. 
  • For more information visit www.irs.gov.

Refundable Tax Credits:

  • Refundable tax credits are available for private-sector employers that are required to offer coronavirus related paid leave to employees.
  • Refundable tax credits are also available for independent contractors who would have qualified for coronavirus related paid leave if they were employees. 
  • IRS will be posting information soon on these credits on its website (www.irs.gov), including information on how to obtain advance payment of these credits

Counseling & Training:

  • Resource partners including Small Business Development Centers (SBDC), Women’s Business Centers (WBC), and Minority Business Development Agencies (MBDA) will receive additional funds to expand their reach and better support small business owners with counseling and up-to-date information regarding COVID-19. Counseling is free and training is low-cost with these partners. The additional funds that Congress provided will help keep this possible. Visit or contact the organizations listed for more information.
  • SCORE provides free, confidential business advice through our volunteer network of 10,000+ business experts. You can meet with a mentor online. Fore more information visit SCORE’s website
  • There will soon be a joint platform that consolidates information and resources related to COVID-19 in order to provide consistent, timely information to small businesses.

Please note that this information was compiled from several reliable sources. The City of Troy does not guarantee the accuracy of all of this information and does not guarantee eligibility and/or approval of any of these resources. Please contact your accountant, financial institution, the IRS, or other source noted herein for more information.

Please note that this list does not contain all support and provisions of the CARES Act, all information of how it pertains to each individual, business, or organization, or all information on application of the support noted herein. For a copy of the entire Act click HERE

Also be sure to check www.troyal.gov/coronavirus for additional information on the City’s COVID-19 response and resources available to residents and businesses during this public health crisis.

We know this is an unprecedented time. We thank you for your support as we work to get us all safely to the other side of this.

Additional Links


Additional Documents

Listing files in 'CARES Act'