Decoding the CARES Act

Lauren Millard, CDFA
Morgan Stanley

Many small businesses are under extreme financial pressure as a result of the shelter in place order across the state. Though many of those restrictions are easing, the economic restart will be slow. Alabama Gov. Kay Ivey’s order to lift some restrictions still includes a “safer at home” message for employers. Restaurants are still restricted to deliver and curb-side service, and salons, barber shops, entertainment venues, and health clubs must remain closed.

Congress passed additional funding to the Corona Virus Relief and Economic Security (CARES) Act this week.┬áThere are temporary provisions within the CARES Act that could positively impact cash on hand and reduce taxable income, specifically deferral of employer SS taxes and expansion of losses. These are in addition to the loans and enhanced unemployment benefits available to small businesses. The Act is cumbersome to comb through, so here’s a resource to help make sense of it from your friends at Morgan Stanley.

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