Skip to Content Top

Will the “Cares Act” Help Me and My Business?

business man reviewing paperwork

First and Foremost, We Are Here To Help You

The attorneys and staff at Bilu Law, P.A. are committed to supporting you through the unprecedented conditions that we are experiencing together. Recently, the President signed into law the Coronavirus Aid, Relief and Economic Security Act (“Cares Act”), which provides non-recourse loans of up to $10,000,000.00 for eligible businesses which continued to pay salaries and other business expenses during the period between February 15, 2020, and June 30, 2020 (the “covered period”). The loans are provided by third party private lenders and require no loan fee, no personal guarantee, no collateral, and carry no prepayment penalty. Below is a summary of some of the other salient provisions of the Cares Act:


  • Businesses are eligible for a loan under the Cares Act if:
  • The business has less than 500 employees or is otherwise designated a small business by the Small Business Administration;
  • The business was in operation before February 15, 2020;
  • The business paid employee or independent contractor salaries and payroll taxes during the covered period; and
  • The business certifies that (i) the current conditions necessitate the loan, (ii) funds will only be used for an allowable use, (iii) it has no duplicative loan under the Cares Act is pending, and (iv) it has received no duplicative loan under the Cares Act.

Allowable Uses

  • Loans under the Care Act may be used for the payment of:
  • Payroll costs;
  • Payment of any mortgage interest;
  • Costs for continuation of group health care benefits during periods of paid sick, medical, or family leave;
  • Insurance premiums;
  • Sales commissions or similar compensation;
  • Rent;
  • Utilities; and
  • Interest on any other debt incurred before the covered period.

Interest Rate

  • The interest rate may not exceed 4% APR.


  • The term may be up to 10 years.

Loan Deferment

  • Requires lenders to provide complete payment deferment relief for at least 6 months, and up to 1 year.

Loan Forgiveness

  • Loan proceeds are eligible for loan forgiveness in the amount equal to the sum of: (i) payroll costs during the covered period for employees and independent contractors with a prorated salary of less than $100,000.00, (ii) rent costs during covered period, and (iii) any utility payments made during the covered period. The amount of loan forgiveness may be reduced, however, to the extent that there has been a decrease in staff or a greater than 25% reduction in wages for any employee making less than $100,000.00.


The COVID-19 pandemic has caused unprecedented disruption to business in the U.S., with small businesses being among the hardest hit. While the Cares Act represents a welcomed beacon for those small businesses, having trusted and informed counsel to help navigate its provisions is essential in leveraging all the benefits available to your business. Bilu Law, P.A. has a team of attorneys dedicated to understanding the resources available to small businesses under the Cares Act, and the strategies which may be employed to ensure maximum benefit to clients.

To assist our clients, colleagues and friends, we have put together this list of what you will need to apply.

As a part of the new legislation, the Small Business Administration (SBA) has created a nearly $350 billion loan program called the Paycheck Protection Program. This program is available to businesses with 500 or fewer employees to help with payroll, rent, utilities, healthcare costs and more. The SBA has also expanded a number of their existing programs, including the Economic Injury Disaster Loan program.

The federal government is currently finalizing the details and protocols about how and when different programs and relief will be implemented.

If you believe that you will qualify for relief from the CARES Act, please provide or collect the following documents which may be required:

Although details are still being finalized, the following documentation may be required when applying for a program when it becomes available.

Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:

  1. 2019 Payroll — including the last 12 months of payroll
  2. 2019 Employees — 1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)
  3. Healthcare costs — all health insurance premiums paid by the business owner under a group health plan.
  4. Retirement — your company retirement plan funding paid for by the company.

As always, the attorneys and staff at Bilu Law are here to assist you and your business in any way that we can. We can assist with questions, strategies and even applying for assistance on your behalf. Please don’t hesitate to contact us at (954) 239-7386 assistance. We thank you for being a valued client, colleague and friend, and we wish you health and safety during these challenging times.

We Are Here As Your Attorneys In Good Times And Challenging Times.

Thank you again for your loyalty.

Truly Yours,

Ron S. Bilu, Managing Partner