March 27, 2020
A new NBAA resource offers insights about potential benefits to business aviation stakeholders from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The measure was passed by the U.S. Senate on March 25, with a vote expected in the U.S. House of Representatives by the end of the week.
The legislation provides more than $2 trillion in relief to the U.S. economy, including a 50% credit for businesses that had to suspend operations or have suffered a greater than 50% decline in revenues on qualified wages against their employment tax obligations for each quarter. The bill also offers temporary deferrals of the employer’s share of Social Security payroll taxes that would have otherwise been owed from the date of enactment of the legislation through Dec. 31, 2020.
Additionally, the bill establishes a $500 billion fund to provide direct loans, loan guarantees and other investments to eligible businesses that have incurred or are expected to incur losses that threaten their operations as a result of the COVID-19 crisis. A separate program offers similar opportunities for small businesses, including zero-fee loans to cover payroll for up to eight weeks.
“For NBAA members and the general aviation community, the CARES Act offers significant opportunities for relief,” the resource notes. “However, specific details on applying for many of the programs are still under development.”
NBAA cautions the information provided in the resource is not intended to offer more than an introduction to the measure and encourages members to consult their legal and tax advisors to address their specific business and personal needs.