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CARES Act

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020. It encourages eligible employers to keep employees on their payroll despite experiencing economic hardship related to COVID-19. There are 2 main components:
  • Employee Retention Credit
  • Paycheck Protection Program loan

Get the credit and loan

An employer can get both the Employee Retention Credit and the Paycheck Protection Program loan if:
  • They applied for a PPP loan, received the payment, and repaid the loan by May 7, 2020 (in accordance with the Limited Safe Harbor With Respect to Certification Concerning Need for PPP Loan Request in the Interim Final Rules issued by the Small Business Administration effective on April 28, 2020), they'll be treated as though they haven't received a covered loan under the PPP for the purposes of the Employee Retention Credit. Therefore, the employer will be eligible for the credit if the employer is otherwise an Eligible Employer. 
An employer can't get the Employee Retention Credit and the Paycheck Protection Program loan if:
  • The Eligible Employer receives a Small Business Interruption Loan under the Paycheck Protection Program that is authorized under the CARES Act (“Paycheck Protection Loan”). An Eligible Employer that receives a paycheck protection loan shouldn't claim Employee Retention Credits.