THE BILL The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses that qualify for the Economic Injury Disaster Loan to cover immediate operating costs.
There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage, and existing debt could be forgiven, provided workers stay employed through the end of June.
THE MEAT
Self-employed people, freelancers, Owners’-employees of S corporations, LLC’s and independent-contractors (hereafter “the Group”), have never qualified for the privilege of unemployment. Our idiot 1600 Pennsylvania Avenue thieves, Congress and the Senate, finally have silenced Mitch O’Connell’s polarized dogma* and authored a Temporary Pandemic Unemployment Assistance program that provides unemployment benefits through the end of the year to the Group, , (endemic to our readers) and provides an additional $600 per week for 4 months in addition to regular state benefits. As addition, please believe that if possible, many businesses may qualify for loans to accommodate borrowers with federally-backed obligations that will result to a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days. The funds must insure employee-continuance. Naturally, restrictions apply.
Multi-family borrowers may request a similar forbearance for up to 30 days.
In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period. (California). All States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government, also with restrictions, for the base amount the Group receives from the state. That boosted payment will last for four months. Because our clients populate 40 states and 7 foreign countries, kindly email our office from our non-resident California for clarification.
Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child. You do the math.
The author reviewed New York Times and encapsulated the NYT article. More to come.
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) — a significant piece of legislation that seeks to provide approximately $2 trillion worth of economic assistance to consumers and businesses provided to us from Bank of America: As a part of the new legislation, 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. The federal government is currently finalizing the details and protocols about how and when different programs and relief will be implemented, and how Bank of America as a financial institution will help facilitate the execution of these programs.
If you believe that you will qualify for relief from the CARES ACT:
Although details are still being finalized, some documentation may be required when applying for a program when it becomes available. Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:
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.
THE ANSWER Should any client request additional information, email Bill at……………….. iknowtaxes@yahoo.com, with a CC to Joanna@williamshineco.com. Don’t call Bill, his telephone time is restricted to our up to 2000 clients. BTW, our office has been expanded into our employees’ homes. A thank you to Carlos Hidalgo who created an office network that allows our Secretary of Defense, Karmen, to point-guard the system. Every employee can be contacted through our office telephone in San Francisco…415- 346-7546 * it took a Pandemic to waken him up!
Comments