In this edition of the Promo Insiders podcast, we break down the CARES Act – the $2 trillion coronavirus relief package signed into law last week – and how it pertains to small-business owners. Theresa Hegel, executive editor of digital content, talks with Tom Vaughn, a corporate finance lawyer with Detroit-based law firm Dykema, about the best loan and grant opportunities that struggling entrepreneurs can pursue right now.

Podcast chapters
0:45 – A quick overview of the federal programs available for coronavirus relief
5:22 – What are Paycheck Protection Program (PPP) loans all about?
9:30 – Should you try for an employee retention credit instead?
12:00 – What’s the best route for independent contractors and the self-employed to take?
15:30 – How small businesses can get their PPP loans forgiven
21:00 – Other financial tips to help you weather this crisis

Tom Vaughn, a corporate finance lawyer with Detroit-based law firm Dykema

The CARES Act sets aside about $350 billion in PPP loans that small businesses can use to cover payroll costs for eight weeks to help weather the coronavirus pandemic. Businesses can apply for up to two and half times their average monthly payroll, capping out at $10 million. As long as the money is used for approved purposes, namely payroll and certain other expenses, and the company doesn’t lay off employees during the loan period, the PPP debt will be forgiven entirely. Vaughn recommends applying for a PPP loan as quickly as you are able, because the money is apt to dry up quickly due to high demand. There are indications that the Treasury Department will go back and ask for more funds if that happens, but it’s best to get the ball rolling as soon as you can, Vaughn says.

There are other programs laid out in the bill that could be of help to small businesses and the self-employed, including expanded unemployment insurance benefits and employee retention tax credits. Vaughn recommends consulting with your accountant or lawyer to determine which program best fits your needs.

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