CARES Act

What is the CARES Act

The CARES Act, is designed to provide relief to individuals, families, and business owners during this time in an effort to shore up our nation’s economy as we weather this pandemic and its impacts. Among many other items, included in this bill are the following:

Direct Payments: All Americans with adjusted gross income of $75,000 or less will receive a one-time payment of up to $1,200 ($2,400 for married couples) plus an additional $500 per child. These payments are phased out from $75,000 AGI to $99,000 AGI. Those individuals who have no income or whose income is derived from Social Security also qualify for this payment.

Retirement Funds: Until December 31, 2020, the 10% early distribution fee is waived if the funds are withdrawn for coronavirus-related purposes.

Payroll Tax Delay: 50% of the 2020 employer payroll taxes are delayed until December 31, 2021; the other 50% will be due December 31, 2022.

This summary of the direct payments and tax implications of the CARES Act for individuals and businesses is from the Journal of Accountancy.

How the CARES Act Can Help Your Business

Do you need capital to cover the cost of retaining employees?
The Paycheck Protection Program might be right for you.
The program would provide cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven … Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program is would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.

A quick infusion of a smaller amount of cash to cover you right now?
You might want to look into an Emergency Economic Injury Grant.
These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you must first apply for an EIDL and then request the advance

DO you have fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help.
This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.

Do you need quality, free counseling to help you navigate this uncertain economic time? The resource partners might be your best bet.