The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) is now effective. It provides economic relief to individuals, businesses, nonprofits and state and local governments. The Rock Fusco & Connelly, LLC  professional response team has put together a Resource Page on our website to help you understand how the various provisions will apply to you or your business. Most notably the CARES Act authorizes the Small Business Administration (“SBA”) to guarantee up to $350 billion in loans. As written the loans work like this:

  • A loan would be processed current commercial lenders and would be guaranteed by the SBA;
  • Loan amount is capped at 2.5 times the average monthly payroll over the last 12 months;
  • For the 8-week period after getting the loan you would add together all monies spent on payroll, rent, mortgage and utilities and that total amount would be forgiven;
  • The remaining balance would be paid over 10 years with no more than a 4% interest rate;
  • No personal guarantees are required

For example, assume your business maintained a 12-month average payroll of $1,000,000.  This would allow for a $2,500,000 loan.  Further assume that for the initial 8 weeks after the issuance of the loan your total payroll, building costs and utilities totaled $1,200,000. In this instance, the $1,200,000 initial expenses would be forgiven, and the remaining $1,300,000 balance would be repaid pursuant to a 10-year amortization at no higher than 4% interest with no personal recourse. Businesses should apply through their current commercial lenders.

Your attorneys at Rock Fusco and Connelly are here to help you navigate how best to utilize the portions of the CARES Act that can benefit your business and support your employees at this uncertain time. Please contact us so that we may assist you in taking advantage of all the CARES Act has to offer. We can be reached via email at, or phone at (312) 494-1000.

To learn more about these CARES Act topics please visit the links to our memos below:

CARES Act Loan Provisions

CARES Business Tax Provisions

CARES Act Individual Provisions

CARES Employee Retention and Payroll Tax Deferment

CARES Act Unemployment Provisions

CARES Modifications to Business Interest Expense

CARES Act Labor Provisions

CARES ACT- Employer Opportunites Available Today

We hope that you and your families are healthy and safe at home. These are uncharted times that we are experiencing. We are here to help you navigate through these difficult times and challenges that we are facing. If we may be of assistance, please do not hesitate to reach out.

Learn More About The Impacts of COVID-19 to Employers & Businesses



Further RFC Articles Addressing COVID-19 and it’s Impact on Your Business