Get Small Businesses Back to Work CARES Act

There is some good news today for small business owners.  The Coronavirus Aid, Relief & Economic Security (CARES) Act was passed by the house and signed into law by the President.  In it, small business who are negatively impacted by the current state of affairs, can find some relief.

Here’s is a breakdown of how it can help you as a small business, get back to work, pay the bills, keep your team employed and curve some of the effects to your bottom line.

How it works:

  • First, you should know that some or all of the loan is forgivable if certain criteria are met.
  • No personal guarantee or collateral will be required.
  • You’ll be asked for a good faith certification that states the loan is necessary to support continuing your business operations.
  • You are going to use the money to pay rent/mortgage, utility bills, retain workers and maintain payroll.


  • Small business with less than 500 employees or otherwise meets the SBA’s size standard
  • 501(c)3 with less than 500 employees
  • 501(c)(19) Veterans Organization that meets the SBA size standard
  • Sole proprietors, self-employed individuals, contractors, are eligible for the loan if you meet certain criteria.

You can borrow:

  • up to 2.5x your average monthly payroll cost, not to exceed $10 million
  • The payroll cost (for 1099 AND W2 employees) is considered to be: salary, wage, commission, cash tips, vacation leave, FMLA, sick leave, group health benefits, including insurance premiums, retirement benefit and local/state unemployment tax
  • What is EXCLUDED from payroll cost: Any employees salary over $100K/year pro-rated for the period 2/15 through 6/30, payroll taxes, income tax, any compensation for an employee whose principal residence is out the US

Requirements for Loan Forgiveness:

  • The amount eligible to be forgiven can be equal to the amount you spend in an 8-week period beginning on the date of the origination of the loan for the following:
    • payroll costs (as described above)
    • Interest on a Mortgage loan incurred ordinary to the business
    • Rent for business
    • Utilities (electricity, gas, water, transportation, telephone or internet)
    • Tipped wages which includes additional wages paid to the employee
  • Your loan forgiveness can be reduced if you reduce the number of employees or reduce you payroll cost greater than 25%
  • If you’ve already laid off employees or furloughed employees, you can bring them back by 6/30 to avoid a reduction in loan forgiveness.

Get back to work:

  • Bring your employees back and let them help make your business better! This is a perfect opportunity to help to your team members shine!  There is obviously going to be more downtime than you’re used to seeing, so invest in your team and bring out their abilities to benefit the business as a whole.
    • Allow them the creative leeway to help advertise your business. You know that kid on your team who is or has the potential to be a social media influencer?  Get them to build a campaign for your business on social media, NOW.  So, when things return to normal, you can implement the plan.
    • Have a server who is tech savvy? Allow them to look at ways to improve your technology. Investigate new or innovative ways that allow you and your business to function better and become efficient.  Bring on new software that might improve your business long-term.
    • Have someone on your team who wants the chance to make in management? Start training them now.  Let them shadow you to learn what you do.  Give them something to be in charge of and send them off.
    • You never know where you’ll find your rising star. That kid that you invest in today, won’t forget what you did for them tomorrow.  You won’t regret it.

We hope this has been helpful for you and that it gives you just a little bit of hope for surviving this tough season.  We’re here with you and in it till then end.  Please share this info with anyone you might know who could benefit for it.


You can apply for the COVID-19 Relief Loan Program through LiftFund by clicking the link here.

Leal Insurance Services, LLC is a full-service, independent insurance agency offering: auto, home and business insurance.  We’re located in San Antonio, Texas serving all of Texas.  Our mission is to enhance the insurance experience for our clients through Listening, Education and Advocacy of Local community.  Request a quote here.

Please talk with your CPA or tax professional for tax implications.  This is for informational purposes only and is not intended to imply or express insurance coverage of any kind.


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