CARES ACT Summary

A warm welcome to Krystal Lee, our newest associate, who will work closely with Allen Trust Company and Allen Capital Management to better serve our clients.  As a Tax Specialist and Assistant Portfolio Manager, she will work alongside Stephen Paul to conduct tax returns and strategy for our clients and with Julie Bryan on Investment Portfolio Management.  Her first project, to research the CARES Act, resulted in a summary we are now sharing below.  She looks forward to meeting our clients and is available to answer any questions you may have.

The Coronavirus Aid, Relief and Economic Security (CARES) Act, approved March 27, 2020, provides over $2 trillion in stimulus dollars to help many American people impacted by the Coronavirus, also known as COVID-19.   The dollars are allocated as follows:

$500 billion for tax rebate checks; $500 billion for support of several severely damaged industries; $400 billion to support tax credits for wages and payroll tax relief; $300 billion for state and local governments and $150 billion for various hospital and health care system initiatives. 

Small Business Owners should know: The Paycheck Protection Program provides loans up to $10 million dollars.  Loan applications must be submitted with a participating bank.  According to the Portland Business Journal, Oregon businesses have been approved for $2.4 billion of the total $349 billion, and over 70% of the money has been allocated. The Economic Injury Disaster Loan application is available on SBA.gov website. Loan limits are temporily increased to $1 million until December 31, 2020.  Below is a summary of the CARES Act we believe is most helpful to our clients: