We wanted to reach out regarding the CARES Act that has been passed by Congress and signed by the president to inform you of your options during these tough economic times. Once again, the information is constantly being updated, so please reach out with any additional questions.
Q: I am just a normal taxpayer, not owning a business, what is this $1,200 stimulus package I am hearing about and how can I see what I qualify for?
A: Washington Post has created a great article on this and here is the link: https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/. The package is based on your 2018 return UNLESS you have filed your 2019 return already. Since the announcement of this, we have been monitoring our client’s Adjusted Gross Income between the two years. We are still looking to prepare the 2019 return and get approval to file. We would hold off on filing, if you agree, until a stimulus check is received.
Q: I am a business owner and could really use a loan, are there any good options out there?
A: The Small Business Administration (SBA) has a COVID-19 Economic Injury Disaster Loan Application available. These a very low interest loans (not to exceed 4%) and can be repaid over a 30-year period. The online link to apply for this loans is at: https://covid19relief.sba.gov/#/
Q: What is this Paycheck Protection Program I keep hear about and is there a lot of information on it?
A: More information is starting to come in by the day! The government finally released the application to apply for the Paycheck Protection Program and you would file it with a participating SBA Lender. Most banks should be set up as SBA Lenders, so reach out to your banking professional! The link for the application is: https://home.treasury.gov/system/files/136/Borrower Paycheck Protection Program Application (v1).pdf
Any portion of the loan used to make payroll, pay for utilities, rent, mortgage, and existing business debt may be forgiven, dollar for dollar. To receive this dollar-for-dollar loan forgiveness, however, workers need to remain employed through the end of June. Businesses that have let employees go before accepting the loan will not be subject to penalties. If those businesses rehire employees after accepting the loan, they'll receive additional credit to cover wages.
Q: This is great, but it is still a lot of information, can we reach out with additional questions and possibly assistance in preparing some of the applications?
A: Yes, we are here to help. We may charge a nominal fee in preparing applications along with some assistance in questions we may have.
Please let us know any questions and be well!
Ruotolo, Spewak & Co.