The CARES Act:

a positive step forward to provide economic relief to businesses and individuals facing hardship or economic ruin due to the COVID-19 crisis.

“This will end, and when it does, our businesses need to be able to quickly find their

footing so they can put employees back to work and regain their economic strength.”~ Robert M. "Bobby" Dyer, Mayor, City of Virginia Beach

How the CARES Act Breaks Down

SMALL BUSINESSES

BIG CORPORATIONS

STATE AND LOCAL GOVERNMENTS

INDIVIDUALS

PUBLIC HEALTH

$2.3

Trillion

EDUCATION

SAFETY NET1

2

5

4

3

6

7

The Coronavirus Aid, Relief and Economic Security (CARES) Act provides

relief to many impacted by the coronavirus pandemic. Several groups will see

the widest-reaching impacts:

What support is there for small businesses?

The Small Business Administration is receiving a significant amount of funding to help small

businesses weather and survive the crisis. The main features for small businesses are

emergency grants ($10 billion) and forgivable loans ($350 billion) for companies with 500 or

fewer employees. In addition, there is a $17 billion for 7 (a) loan payment relief for existing loans

to cover six months of payments for small businesses already using SBA loans.

→ Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program see the

following page for the comparison summary

→ Economic Injury Disaster Loan (EIDL) Advance

Eligibility: Advances are available to small businesses, sole proprietors, independent contractors, tribal

businesses, as well as cooperatives and employee-owned businesses in operation on January 31, 2020.

□ For those that apply for the Economic Injury Disaster Loan (EIDL), an advance of up to $10,000 will be provided to

small businesses within several days of applying for the loan.

□ The advance does not need to be repaid, even if the grantee is subsequently denied an EIDL.

□ Funds can be used to provide paid sick leave to employees, maintain payroll, meet increased production costs due to

supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

Small Businesses01

Small Businesses01

SBA-Approved Lenders

SBA 7A Lenders Location Contact Name Contact Phone

Atlantic Union Bank Reston, VA Kwame Asiedu , Portfolio Manager II (703) 477-5181

ABNB Federal Credit Union Chesapeake, VA Dan Grubb, Business Services Manager (757) 523-5300 ext..3371

1st Advantage Federal Credit Union

Yorktown, VA Paul Szabo, Business Relationship Manager (757) 886-3300

First Colonial Financial Center Virginia Beach, VA Samantha Damian, Senior Small Business Relationship Manager

(757) 213-6561

BayPort Credit Union Newport News, VA Jennifer Coyne, Vice President (757) 873-4037

Blue Ridge Bank Luray, VA Bobby Herndon (540) 664-8216

Dollar Bank Virginia Beach, VA Robin Witt Gregory, Vice President Business Banker

(757) 284-5023

Langley Federal Credit Union Newport News, VA Doris Jackson, Vice President (757) 224-4779

Old Point National Bank Norfolk, VA (757) 728-1873

Southern Bank & Trust Company Virginia Beach, VA (757) 446-9408

Fulton Bank Virginia Beach, VA Tara Jones, Financial Center Manager (757) 468-1498 ext.12980

Download the complete SBA lenders list here.Download the PPP lenders list here.

NOTE: You can apply for both loans (EIDL and PPP) but you can’t use funds from each loan for the same expenses

such as payroll, rent, insurance, etc.

More support for small businesses:

→ Entrepreneurial Development: The CARES Act provides funding and resources to small

business development centers, women's business centers, and minority business centers.

These centers are to provide small businesses with assistance in getting through COVID-19

challenges, especially in rural or economically distressed areas. Collectively, these programs

will receive $275 million.

Eligibility: Small business development centers, women's business centers, and minority business centers

□ Minority Business Development Agency (MBDA) receives $10 million in grant funding to support technical assistance

to minority business development centers and minority chambers of commerce for counseling for minority business on

available COVID-19 related resources.

Small Businesses01

The CARES Act is also providing more robust support to individuals in the wake of

the coronavirus public health crisis and associated economic fallout. That means

direct cash for many, plus expanded unemployment benefits and new rules for filing

your taxes and making retirement contributions.

Individuals02

→ Expanded unemployment insurance (UI) for workers

Eligibility: UI will be provided to individuals that have lost their jobs or have had reduced hours for reasons related

to COVID-19 and to those not usually eligible for UI, such as the self-employed, independent contractors, and those

with limited work history.

□ This Act adds $600 per week for up to four months from the federal government on top of whatever base amount a worker

receives from the state.

□ In Virginia the most you can receive per week is currently $378; the least you can receive is $60. You may receive benefits

for a maximum of 26 weeks. For example, if an out-of-work person is receiving about $378 per week, under the new federal

program their take-home pay will be $978.

□ The federal government will fund an additional 13 weeks of unemployment benefits through December 31, 2020 after

workers have run out of state unemployment benefits.

→ Cash payments

Eligibility: For individuals

□ Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a

check and families would get $500 per child.

□ The checks start to phase down after that and disappear completely for people making more than $99,000 and couples making

more than $198,000.

What support is there for big businesses?

Roughly $500 billion in loans and other money are set aside for big corporations. These companies

will have to pay the government back and will be subject to public disclosures and other requirements.

→ Tax Credits for Small and Big Businesses

Eligibility: All businesses

□ The Act establishes a fully refundable tax credit for businesses of all size that are closed to easy the burden of keeping

workers on the payroll.

□ The goal is to get those employees hired back or put on paid furlough to make sure they have jobs to return to. The credit

covers to 50 percent of payroll on the first $10,000 of compensation, including health benefits, for each employee.

□ 100 or more full-time employees: the credit is for wages paid to employees when they are not providing services because of

the coronavirus.

□ 100 or fewer full-time employees: eligible employers could use the deduction even if they aren't closed.

□ Covers up to $10,000 paid per employee, including benefits, for the period 3/13/20- 12/31/20

□ Payroll tax deferred, payments to be spread over 2 years

□ Net operating losses (NOLs) modification: NOLs arising in FY’s ‘18, ‘19, and ‘20 can be carried back 5 years AMT credits

available as refundable credits through 2021 can be claimed as a refund now

□ Allowable deductible interest expenses are increased from 30% to 50% for 2019 and 2020

Big Corporations03

→ Public Health and Local Governments: The Act will provide billions of dollars in aid to

hard-hit hospitals struggling to deal with the outbreak as well as direct aid for those state

and local governments running out of cash because of a high number of cases.

→ Federal Emergency Management Agency (FEMA): $45 billion for FEMA’s Disaster

Relief Fund to provide for the immediate needs of state, local, tribal, and territorial

governments to protect citizens and help them recover from the overwhelming effects of

COVID-19. Reimbursable activities include $400 million Fire/EMS grants, emergency

preparedness grants, and grants for food and shelter providers.

→ Veterans' Health Care: There is $20 billion set aside for veterans.

→ Economic Development Administration (EDA): The Act provided $1.5 billion for

economic adjustment assistance to help revitalize local communities after the pandemic.

EDA dollars can go to: states, cities, counties, district organization, institution of higher

education, or a non-profit acting in coordination with a political subdivision of a state.

These eligible applicants must demonstrate an unemployment rate over 1% greater than

the national average or other certain unemployment or economic adjustment problems.

Other Key Provisions03

→ Department of Interior

Bureau of Indian Affairs will receive $453 million, Bureau of Indian Education receives $69 million,

Indian Health Services receives $1.032 billion, Office of Insular Affairs receives $55 million

→ Arts and the Humanities

The National Endowment for the Arts & Humanities (NEA) will receive $150 million in total; $75

million for the National Endowment for the Arts and $75 million for the National Endowment for the

Humanities; money will be used to assist state arts and humanities agencies and partners.

→ Manufacturing Extension Partnerships (MEP)

The CARES Act provides $50 million for the Hollings Manufacturing Extension Partnership to help

small- and medium-sized manufacturers recover by finding value within the supply chain and

expanding markets, and removes cost sharing requirements to this funding.

Other Key Provisions03

City of Virginia Beach

Department of Economic Development

4525 Main Street, Suite 700

Virginia Beach, VA 23462

(757) 385-6464

ecdev@vbgov.com

"COVID-19 is creating extremely difficult conditions for local

businesses and we want to do everything we can to make sure they

make it through. Local, state and federal resources are being

brought to bear to help ease the way."~ Mayor Dyer