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The original item was published from 4/23/2020 5:21:45 PM to 5/30/2020 12:00:03 AM.

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Law

Posted on: April 23, 2020

[ARCHIVED] CARES Act Part II offers funding to small businesses, sole proprietors, independent contractors

The U.S. Senate passed the second installment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act on April 21, which will provide $484 billion to help small businesses and others struggling due to the COVID-19 situation.


The package includes an additional $310 billion for the Paycheck Protection Program (PPP), which affords employers with 500 employers or fewer, including sole proprietors and independent contractors, to apply for a forgivable loan equal to 2.5 times their average monthly payroll. The PPP had run out of funds from the initial CARES Act bill the week prior.


Following the bill’s passage, Ohio State Bar Association President Eleana Drakatos noted in an email newsletter that this round of PPP funding includes $60 billion that has been set aside specifically for community banks and smaller lenders, and encouraged OSBA members to reach out to inquire about how they may be able to benefit from the new bill.


“While at this point, we do not have a lot of information to share about how the application and distribution of those funds will occur, we do want to strongly encourage you to reach out to your local banks and lenders without delay to inquire about how you might take advantage of this funding to support your practice,” Drakatos said in her newsletter.


“Our friends at Clark Schaefer Hackett CPA’s & Advisors have updated their original article that provides important information to help you in determining if you are eligible for the relief programs, including additional guidance for partnerships and LLCs,” she continued. “We encourage you to become familiar with the terms and benefits and then talk directly to your local lender. The U.S. House is expected to act on the legislation Thursday and once the President has signed the bill, you will want to be ready and to get in line as soon as possible. We will continue to provide updates as they become available.”


COVID-19 Resource Directory
Drakatos also noted that OSBA continues to update its COVID-19 Resource Directory daily, and has additional complimentary CLEs scheduled to help members as they work to maintain their practice and continue to serve clients during this difficult time. Anyone with more helpful information can reach the OSBA at osba@ohiobar.org with suggestions.

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