On March 27th, 2020, President Trump signed a legislation called The Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In response to this, our partners over at Insperity have created a brief information sheet that outlines what this legislation means for small or medium sized event and entertainment businesses, like yours.
What is the purpose of the CARES act?
The US government passed the CARES Act as a response to the economic and health impacts of the COVID-19 pandemic. One of the main components of the CARES Act revolves around providing support for small and medium sized businesses. Per Insperity, the centerpiece of this legislation is the Paycheck Protection Program, which will provide major benefits to many event and entertainment companies. Download the Insperity information sheet to learn more about this program, and how the loan process will work.
What businesses are eligible for the Paycheck Protection Program?
Most, if not all, small or medium sized event and entertainment businesses will be eligible to receive no-fee “paycheck protection loans” due to the devastating disruption the industry has suffered as a result of COVID-19. Other qualification determinations generally include:
- Employers with less than 500 employees (whether employed on a full-time, part-time, or other basis)
- Non-profits (other than those receiving Medicaid funds)
These loans require no collateral. Check out Insperity’s information sheet for more insight into what businesses are eligible for the Paycheck Protection Program.
How much money will the CARES Act provide for event & entertainment businesses?
The amount of the loan provided by the CARES Act to eligible event and entertainment businesses is up to 2.5 times their average monthly “payroll costs” for the last 12 months up to an annual rate of pay of $100,000 per employee. Loans may not exceed $10M.
Download Insperity’s information sheet to learn more about these payroll cost calculations as well as the loan forgiveness parameters provided in the Paycheck Protection Program.
Please note: the information provided by Insperity is preliminary. They are continuously reviewing the final text of the CARES Act and their teams remain focused on finding ways that Insperity can work with their clients on this and other programs. Let us know if you are interested in speaking with Insperity and understanding what they can do for your business.