Additional Financial Relief Options for Businesses: Main Street Lending Program and Employee Retention Tax Credit
May 12, 2020
Businesses are still able to take advantage of other federal financial relief option if they did not apply or qualify for a PPP. Some of those options include the Main Street Lending Program and the Employee Retention Tax Credit.
Main Street Lending Program
This is a lending program separate from the PPP that is designed to assist small and medium-sized businesses with up to 15,000 employees through government-backed loans. These loans are not forgivable. When the program was first announced, the Federal Reserved sought feedback from the public to further refine the program. In response to the more than 2,200 letters from individuals, businesses and nonprofits, the Reserve Board decided to expand loan options to businesses and increased the maximum size of businesses that are eligible for the program. To qualify a business must have been established before March 13, 2020 and been created or organized in the United States. Click here to read a short guide to the program created by the US Chamber or a more extensive FAQ provided by the Federal Reserve.
Employee Retention Tax Credit
The CARES Act created a new employee retention tax credit for employers who are closed, partially closed, or experiencing significant revenue losses as a result of COVID-19. Employers who receive a PPP loan are not eligible for this tax credit. To learn more, click on this guide provided by the US Chamber of Commerce. You can also read more extensive information on the IRS website.