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All of us here at Adcraft Labels understand that tough times have begun to hit individuals and companies all around the world. Fortunately, there’s financial help from our government that will allow you to save your business and you may not have to pay it back.

The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act aims to address the economic impact of the COVID-19 pandemic from a variety of perspectives, including tax relief, grants and loan assistance, healthcare and education provisions, and more.

Below are some of the key provisions to the CARES Act we’d like to share with you that may help your business secure funding to avoid closure or layoffs (1).

Paycheck Protection Program

The CARES Act’s Paycheck Protection Program can keep wages flowing to you and your workers. Businesses and nonprofits with less than 500 employees, as well as sole proprietors (individuals making money but haven’t incorporated as a legal entity) and other independent contractors, such as single-member LLC are eligible for this expanded Small Business Administration (SBA) 7(a) loan program under Sec. 1102 of the CARES Act.

The amount you’re eligible to receive is equal to the amount of money your business or non-profit would typically spend in a month on payroll. “Payroll” is broadly defined to include:

  • Wages and commissions for all full-time and part-time employees (capped at $100,000/year)
  • Tips typically made by your workers
  • Costs of benefits, and of state and local employment taxes

Wages you’ve paid to sole proprietors and contractors (similarly capped at $100,000/year), The total loan amount is up to 2.5 times the total of these monthly expenses. There’s a total loan cap of $10 million. There may be adjustments made to the calculation if your business is seasonal.

Keep our Business Operational

The SBA 7(a) loan money is intended to keep your staff paid and your business or organization afloat, and covers many expenses including:

  • Payroll and other wages
  • Continuation of group health care benefits while any employees you have are out on paid leave
  • Insurance premiums
  • Mortgage interest
  • Rent
  • Utilities
  • Interest on any other debt obligations that were incurred before the covered period

Much of the CARES Act Money You Spend Can be Forgiven

Business operations costs which you spend to keep your business functioning through the pandemic may be forgivable expenditures. This is the government’s way of putting free money into your pocket so you can keep staff employed. You can rehire any furloughed staff while you keep your business or non-profit on life support until we get through the pandemic. Forgivable uses for your 7(a) loan include:

  • Payroll costs
  • Mortgage interest
  • Rent
  • Utilities

Contact your Business Banker regarding these loans, as they are the one’s administering them or click here for more information.

Additional Options Available to Most Businesses And Employees

Families First Coronavirus Response Act (FFCRA) – Starting April 1, 2020, you can utilize this legislation, which provides payroll tax credits for employees who cannot work due to qualifying reasons. This option would be helpful if you have some employees working and others who are not. The Act provides that employees of covered employers are eligible for:

  • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay
  • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay
  • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay

Click here to learn More About The Families First Coronavirus Response Act

Small Business Administration Disaster Loan Assistance – In response to the Coronavirus (COVID-19) pandemic, small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three (3) days of a successful application. This loan advance will NOT have to be repaid.

Click Here To Apply For The SBA’s Forgivable Loan

Unemployment – You can layoff your employees so they can collect unemployment. However, we encourage you to consider the above options before you layoff staff.

Stay safe,
The Adcraft Labels family


1. The information above does not represent a comprehensive, exhaustive list of all CARES Act provisions. Additionally, some provisions may have eligibility criteria and conditions not described here in full. Click here for the full text of the bill. Please consult your Financial Advisor, and Tax and Legal Advisors, to understand the potential CARES Act impact to your particular financial and tax situation, respectively.