Small Businesses and Individuals: What You Need To Know About the CARES Act
Our focus is on the survival and recovery of our small business and individual clients!
Please note that this information is evolving, so be sure to check with your accountant and/or lender before proceeding with any applications.
The links we provided to the Small Business Administration and other government sites should be up-to-date as these pages are being revised by the authorities as changes take place.
We will continue to gather information and provide you with updates as additional developments occur. As always, if you have questions call or email us.
Here are the resources you need to understand the CARES Act benefits. We're here to help you successfully navigate the process, so reach out to us for assistance.
Update 10/6/20 - You May Qualify For Small Business Relief Grants in Mahoning and Columbiana Counties
A Small Business Relief Grant with a maximum of $10,000 is available to qualifying small businesses in Mahoning and Columbiana Counties. Read the full post here.
Update 9/2/20 - IRS Issues Guidance on Implementing Payroll Tax Deferral
This memorandum instructs the Secretary of the Treasury to defer the withholding, deposit, and payment of the tax imposed on the employee portion of the Social Security tax of 6.2%. The employer is responsible to collect and remit any deferred taxes. Keep in mind that this is a deferral and nothing in the memorandum explicitly forgives this amount nor can it without an act of Congress. Read the full post here.
Update 8/12/20 - President Signs Executive Order To Defer Employee Portion of Social Security Taxes
As you are probably aware, on Saturday President Trump issued an executive order, with an effective date of September 1, to defer the withholding, deposit, and payment of the 6.2 percent Social Security tax (employee portion). The deferral applies to compensation paid between September 1 and December 31, 2020 to any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000. The tax payments are deferred without any penalties, interest, additional amount, or addition to the tax. Unless there is a law changing the situation, the deferred taxes will be due at the beginning of 2021.
The US Deptarment of Treasury has not released implementation instructions on this yet, but everyone needs to be cautious employing this without fully understanding the ramifications.
Given the anticipated Treasury guidance, and the September 1 effective date, we DO NOT recommend that our clients take immediate action to implement the deferral. Read the full post here.
Update 6/4/20 - Significant Changes Made To The Paycheck Protection Program By Act H.R. 7010
The House and Senate both passed the Paycheck Protection Program Flexibility Act, H.R. 7010, and it is expected to be signed into law by the President today.
The Act makes significant changes to the Paycheck Protection Program, making loan forgiveness much easier for many businesses struggling with meeting the original requirements and timelines. By granting greater spending and rehiring flexibility, more time to use the funds, more time to re-hire employees, and a decrease in the mandatory minimum funds to be spent on payroll costs, more borrowers will be able to meet the loan requirements and achieve complete loan forgiveness.
Update 5/18/20 - Paycheck Protection Program Loan Forgiveness Application
Although the Small Business Administration (SBA) has released an application form for Paycheck Protection Program (PPP) loan forgiveness, the SBA has not issued any further instruction for either borrowers or lenders on the overall forgiveness process. We recommend that you read this document for understanding and preparation, but most lenders and accountants agree that there will be revisions and clarifications necessary before the process is finalized. We also recommend that you stay in touch with your lender for final guidance.
The Paycheck Protection Program Frequently Asked Questions is kept up to date by the SBA and is a good resource to answer some of your questions.
We will continue to look out for you and your business by providing additional information as it is released.
Coronavirus Emergency Loans - Small Business Guide and Checklist:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn.The Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crises or restore their payrolls afterward.
The Small Business Owner's Guide to the CARES Act:
This guide provides information about the major programs and initiatives that are available for small businesses.
Paycheck Protection Program Frequently Asked Questions
Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule. The SBA will keep this updated.
CARES Act -- Paycheck Protection Program Loan Application Checklist:
Get your information together as soon as possible.
CARES Act - Paycheck Protection Program Application
We encourage you to contact your bank as soon as possible to make an appointment to process your loan. Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need
time to process your loan.
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply.
IMPORTANT: The lender will be calling you to process your application. Be sure to answer your phone, even if it is a number you don't recognize. You don't want to get put in the back of the line because they couldn't reach you.
Economic Injury Disaster Advance Loan
Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid. Apply for the Loan Advance here.
Coronavirus and Unemployment Insurance Benefits - Ohio Department of Job and Family Services
What employers and emplyees need to know about layoffs because of the COVID-19 pandemic to expedite their claim process.
