Will the CARES Act Help Keep Companies Afloat?

Thomas R. Anderson, partner in our Corporate practice group, was recently interviewed by WBFO – NPR Buffalo/Toronto for a story titled, “Will the CARES Act help keep companies afloat?” The story explains that local businesses have been suffering since the Coronavirus hit and the CARES Act was passed by Congress to help. But will it be enough for those who need it?

Tom describes another option, the Payroll Protection Program. The PPP offers loans up to $10 million for small businesses under 500 employees, non-profits and the self-employed, with loan amounts based on two and a half times a company’s payroll costs.

“And it’s somewhat amazing that if over an eight week period the company that receives that loan uses it to pay 75% of that on payroll related expenses, and the other 25% which you can use on other expenses, that loan will be forgiven by the government. So, if it’s used in the way that it’s intended, the money that’s received by the business it will never have to pay back. So, it’s quite an exceptional program coming from the government,” Anderson said.

To view or listen to the story on the WBFO – NPR Buffalo/Toronto website, click here.

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