[Updated 4\/13\/20]<\/p>\n
The CARES Act is a massive new law \u2013 long, complex, and full of relief programs to help small business and self employed individuals.<\/p>\n
I\u2019m going to highlight the primary grant and loan programs for small business.\u00a0 This is my personal summary of the programs based on my current understanding.\u00a0 I am attempting to get you the critical information while keeping it as simple(ish). Please note that this information is accurate as of the morning of April 2nd<\/sup>, when I\u2019m writing it.<\/p>\n Some of the details are subject to change.\u00a0 Since the Act was signed into law on March 27th<\/sup>, we have received updates, changes, clarifications, and corrections daily<\/u>. I expect to see more and will keep you informed of the major items that I expect to impact many of our clients.<\/p>\n Also note that the SBA is overwhelmed with applications and completely bogged down trying to handle the current need (and I think we\u2019re just getting started).\u00a0 Although they promise quick processing and fast funding, so far I am not seeing it happen.\u00a0 I do encourage you to use the program(s) that make sense for you, but also to be patient with the process and funding.<\/p>\n I hope this helps navigate these huge and confusing relief options.\u00a0 We will be providing multiple ways to get more detailed or personalize questions answered in the near future.\u00a0 Please watch our email newsletter for follow-up Q&A info, group Q&A sessions, and individual consultation options.<\/p>\n Thank you,<\/p>\n Siobhan<\/p>\n <\/p>\n This relief funding has gotten the most media attention.\u00a0 Here are the basics:<\/p>\n If you file single or head of household, and your (adjusted gross) income is less than $75,000, you will receive $1,200 plus $500 more per dependent.\u00a0 If your income is $75,000 – $99,000, you will receive a smaller stimulus check.\u00a0 If your income is over $99,000 you will not receive a check.<\/p>\n If you file married\/joint, and your (adjusted gross) income is less than $150,000, you will receive $2,400 plus $500 more per dependent.\u00a0 If your income is $150,000 – $198,000, you will receive a smaller stimulus check.\u00a0 If your income is over $198,000 you will not receive a check.<\/p>\n The payment you will received is based on the income you reported on your most recently filed tax return (2019 or 2018 if you have not yet filed 2019.\u00a0 However, this is considered an advanced payment of a tax credit on your 2020 tax return.<\/p>\n That means that if you receive the payment and then your 2020 income is higher than the limits above, you will pay back the stimulus payment with your 2020 tax filing.\u00a0 The reverse is also true \u2013 if you do not qualify now, but in 2020 your income is reduced below the limits above, the stimulus payment will be added as a tax credit to your 2020 tax return.<\/p>\n There is some political pressure to change this and make it so no one would have to repay the stimulus payment.\u00a0 However, as the law is currently written, the possibility of repayment exists.<\/p>\n If you owe back taxes or are on a payment plan with the IRS, you are still eligible for this stimulus payment.<\/p>\n If you are not required to file a tax return because you have only Social Security Income, you do not need to file to receive the stimulus payment.<\/p>\n The IRS will directly deposit your stimulus payment if they have your bank info.\u00a0 The way they get your bank info is if your 2018 or 2019 tax return reports it for the purpose of receiving a direct deposit refund or paying tax via direct debit.\u00a0 They also have your bank info if you are receiving direct deposit federal government benefits (such as Social Security).<\/p>\n There is no special form to give your bank info to the IRS.\u00a0 If we are filing your return for you, we can only include your bank info if you are receiving a direct deposit refund or making a direct debit payment. We have no way to provide the bank info to the IRS without attaching it to your tax refund or payment.<\/p>\n <\/p>\n This is my favorite program available for relief right now and can help so many people.<\/p>\n This applies to you if two conditions apply:<\/p>\n The SBA Grant provides $10,000 of immediate relief.\u00a0 This $10,000 acts like a grant, not a loan, and does not need to be repaid.\u00a0 It is taxable income, so you will pay tax on it on your 2020 tax return.<\/p>\n The SBA EIDL (Emergency Injury Disaster Loan) Loan program provides a 3.75% loan of up to $2 million to meet your financial obligations. The SBA will make the first 6 months of loan payments for you, the remainder is your responsibility to repay. The term is to be determined (up to 30 years) for each loan approved.<\/p>\n The SBA Grant & EIDL Loan are two programs, but they are joined at the hip \u2013 there is just one application to submit for both combined. For example, if you apply and indicate that you will have $30,000 in financial impact to cover, the SBA will issue a $10,000 grant followed by a $20,000 loan.<\/p>\n A few important notes:<\/p>\nCARES Act \u2013 Stimulus Check<\/strong><\/h2>\n
CARES Act \u2013 SBA Grant & EIDL Loan<\/strong><\/h2>\n
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