REMINDER: ARA COVID-19 Relief Fund
The ARA COVID-19 Relief Fund Goal is to raise $75,000+ - it currently stands at $64,500. Please note that any direct member can apply for their company or an employee that may have been affected by Covid-19. Details for applying and application are here.
Special Thanks to All Who Have Donated!
Car-Part.com - Rebuilders Automotive Supply - AB CatTech - Robertson's Auto Salvage
Northlake Auto Recyclers - Reitman Auto Parts - We Buy Key Fobs - VET Environmental Team
Last week, close to 4 million Americans filed for unemployment benefits. This raised the number of total unemployment claims to over 30 million, which has put significant strain on state unemployment systems. The Department of Labor’s April 30 Jobs Report found that 12.4% of the U.S. workforce was unemployed – a record dating back to the early 1970s. Furthermore, the Department of Commerce has reported that consumer spending has fallen by 7.5% in March due to state economic shutdowns.
Small Business Programs
The popular Small Business Administration’s Paycheck Protection Program (PPP) continues to quickly distribute the $320 billion allocated by Congress in the program’s second round of funding. Through the first three days of the program reopening on April 27th, banks have processed over 960,000 PPP loans totaling $90 billion. Funds for this popular program designed to provide relief to businesses will be depleted soon as the $350 billion allocated in the first round of the program were depleted within two weeks. It is still possible to apply for a PPP loan. For more information on finding an eligible lender to process your PPP application click here.
In case your business did not receive a PPP loan, your business may be eligible to take advantage of the Employee Retention Credit (ERC). The ERC is meant to encourage employers to continue to pay employees during the COVID-19 crisis by providing for a payroll tax credit. The program allows an employer to claim a refundable payroll tax credit of up to $5,000 per employee for wages paid between March 12 and December 31, 2020, but only for wages paid during a calendar quarter in which the business was either: (1) shut down by government order; or, (2) experiencing a large drop in year-over-year gross receipts. See IRS FAQ: Employee Retention Credit under the CARES Act for more information.