To our esteemed clients and partners,
In this fast-changing situation, I hope you are constant in keeping you and family safe by taking precautions and social distancing.
Recently I communicated the tax extensions granted by Federal and state government. This week I like to provide some resources for you, or someone you know who are coping with the interruption.
The CARES Act
Last week, the U.S. Congress passed and President Trump signed into law the CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) that will provide approximately $2 trillion worth of economic assistance to consumers and businesses.
As such, the Small Business Administration (SBA) has created a nearly $350 billion loan program called the Paycheck Protection Program. This program is available to businesses with 500 or fewer employees to help with payroll, rent, utilities, healthcare costs and more. The SBA has also expanded a number of their existing programs, including the Economic Injury Disaster Loan program.
Although details are still being finalized by the government about how and when different programs and relief will be implemented, some documentation related to businesses may be required when applying for a program when it becomes available.
2019 Payroll — including the last 12 months of payroll
2019 Employees — 1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)
Healthcare costs — all health insurance premiums paid by the business owner under a group health plan.
Retirement — your company retirement plan funding paid for by the company.
Rents & Utilities – your payments in 2019 for these costs
Various financial institutions will help facilitate the execution of these programs. Please continue to check with your bankers about your particular situation.
Official website - https://www.sbc.senate.gov/public/index.cfm?p=guide-to-the-cares-act
Guide to Small Business COVID-19 Emergency Loans: Download here
Small Business Owner’s Guide to the CARE Act: Download here
For the California residents, especially those who are business owners, here is a list of resources by State Treasurer Fiona Ma – https://docs.google.com/spreadsheets/d/1tYNAyRgzUfsAlLl7RJC0Ez_ClyyLXSsNWfB-1UPetQY/edit#gid=0
(Thanks to Russell Doi, my reverse mortgage specialist, for providing this link. For alternative financing options, he can be reached at rdoi@rfslends.com)
We, as human race, have 100% success rate; so life and business will go on at some point. What we can do in this time is to reach out to each other by phone, email or other virtual means and to support one another. During this lock-down period, please do not hesitate to reach out to us if you want a sounding board for any questions or concerns. Meanwhile, keep safe and stay strong!