ObsidianHR: FFCRA and CARES Acts Explained

Good news! On Friday, the President signed into law the CARES (Coronavirus Aid, Recovery and Economic Security) Act. This $2 trillion aid package will offer significantly enhanced benefits for employers and employees over the next six months.

As many Colorado employers have experienced dramatic declines in business, every day matters in plotting your course and taking action. Our labor and employment team is working this weekend on how we will implement and administer these programs as quickly as possible. Time is of the essence, which is why I’m also sharing this PDF reference I received yesterday from Verne Harnish*, author of Scaling Up. It’s the best “business friendly” summary of CARES I’ve seen so far.

Importantly, CARES will make larger SBA and financial distress loans available. These loans include provisions to be “forgiven” in proportion to how much of the loan is used to maintain employment at pre-coronavirus levels. For qualified businesses, at 100%, the government is funding your payroll for the next three months. This seems way better than sending employees to unemployment!

At Obsidian HR, we are collaborating with local banks to expedite the applications for these loans for our clients. The point is to help get you the cash you need faster. We will share information on how to apply ASAP.

Webinar Information
We will be conducting a webinar this week to review the FFCRA and CARES Acts and help answer any questions you may have. Please sign-up as registration is limited.

• Wednesday, 4/1 – 10 a.m. MST – [Register Now]

Other resources and news:

• FFCRA (Families First Coronavirus Response Act) contains provisions for offering extended sick leave and child care leave, as well as tax credits to defer your employer costs for these programs.
• If you worried about the ability to maintain your workforce or do not believe you’ll qualify for a CARES Act Payroll Loan, our Alternatives Guide to a Reduction in Force provides different options you can leverage and includes an easy reference on “how to” if a reduction is necessary.