$2-Trillion Bill Passed to Alleviate Impact of COVID-19 on Businesses
April 3, 2020
Many have been wondering what will happen to our economy with the various difficulties companies are encountering since the outbreak of COVID-19. With people choosing to stay out of public places as much as possible, businesses are forced to close their doors. As a result, many cannot make rent and employees are being laid off. Recognizing how critical this time is, once again, President Trump and our current administration took action. To help alleviate the impact of this crisis, Trump signed a $2-Trillion Dollar Stimulus Bill in order to offer assistance to small businesses in this hour of need.
For business owners and industries reeling under the effects of the Coronavirus Outbreak, a great burden has been lifted upon news of this bill being passed into law on Friday, March 27th. In a recent discussion with Stephen Raub, lead Commercial Real Estate Broker and owner of Investment Realty Company, it was pointed out that this bill offers a variety of provisions designed to help Commercial Real Estate. Which, as a result the quarantines put in place to combat the spread of the Corona Virus, has felt the strain of these difficult times, much like other business. For instance, “many retail tenants are shuttered, like restaurants, fitness centers and hair salons, which then puts their employees out of work. However, the Stimulus package includes $357-billion in loan assistance so that they can keep employees on payrolls and pay their rent.”
Other Provisions of the Bill include:
Allows 5-year carry-back of net operating losses (NOL) for non-REIT businesses for 2018, 2019 and 2020.
Increases the limitation on deductible business interest from 30% to 50% of EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2019 and 2020.
Excludes from income the cancellation of debt related to new, emergency small business loans.
Provides small businesses, many of whom are your tenants, with $367 billion in loan assistance so they can keep employees on payrolls and continue paying obligations.