CARES Act provides aid to small businesses

We are facing unprecedented times and your leadership will help your clients and communities through the next few months. Communication has always been essential to gaining and retaining clients, and every advisor in the employee benefits market needs a good understanding of the Coronavirus Aid, Relief and Economic Security Act, or CARES Act.

Call all your group clients and ask about their challenges keeping their business afloat during the COVID-19 pandemic.  Do they know that up to 2 months of payroll, rent, mortgage and utility costs can be applied for under this new emergency government program? Guiding your clients to the CARES Act may just be what keeps them in business and you as their trusted advisor.

According to a new survey of small businesses conducted by MetLife and the U.S. Chamber of Commerce, 56 percent say financial relief payments for all Americans is a top priority. And, in the months ahead, nearly one-third say they’re looking for guidance on how to keep their employees safe, well and employed.

Key findings in the attached report include:

  • One in four (24%) small businesses have shut down temporarily in response to COVID-19.
  • Among those who haven’t temporarily shut down yet, 40% report it is likely they will do so within the next two weeks. This means a total of 54% of all small businesses report they are closed or could close in the coming weeks.
  • Small businesses are most favorable toward financial assistance in the form of direct cash payments (56%), but also prefer SBA disaster loans (30%).

Currently, there is $350 billion available on a first come first served basis, and with thousands of applications already in the pipeline, your clients may be under a lot of stress and not understand if they are eligible or how they can apply.

If the money received is used to maintain payroll and people in jobs, the loan can be forgiven.

For more information, tune in to our upcoming webinar on Thursday, April 9th 10:00am CDT.