It appears as though the CARES Act recently passed by the United States Congress has a dangerous omission that could be devastating to certain small businesses, Sen. Carla Nelson (R-Rochester) explained today.

The bill includes several provisions aimed at rescuing workers who have been laid off and small businesses who have been forced to close due to the coronavirus. One provision lifts a number of restrictions on unemployment insurance benefits and expands those benefits to cover so-called “gig workers” and those who are self-employed.

Like gig workers and self-employed individuals, many S-CORPS do not pay into unemployment insurance. The CARES Act allows both gig workers and the self-employed to collect unemployment benefits anyway, but does not appear to extend that same benefit to S-CORPS. As a result, those S-CORPS would not be able to secure the same relief available to most other workers during the COVID-19 crisis.

“I am thrilled that congress was able to pass the CARES Act so quickly and with such overwhelming bipartisan support, but this appears to be a serious, urgent issue that needs to be corrected,” said Sen. Nelson. “Government has a responsibility to help the businesses and workers who they are closing down. So far, both the state and the federal government have taken some very good steps. But not giving S-CORPS the same benefits as everyone else would be a massive oversight, and it must be fixed right away.”