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Provisions of the CARES Act that pertain to business

The CARES Act was signed into law late yesterday afternoon (3/27/19).  The bill is more than 800 pages long and we  will need to wait for the IRS, Department of Treasury, DOL and the individual States to figure out how all of this will be  implemented and establish procedures. 

 If you are a business affected by the COVID-19 pandemic, and most are, please be patient.  There is a lot of  assistance  coming.  Watch for guidance to begin coming out, and get with your tax professional, planner,  to help  determine what is the best course of action for you and your business.

Key provisions of the CARES Act pertaining to businesses:

1.  Sec 2301 Creates an Employee Retention Credit for Employers subject to closure or experiencing economic hardship due to COVID-19

2.  Sec 2302 provides for delay of payments of Employer payroll taxes

3.  Sec 2303 modifies the NOL and carryback period.

4.  Sec. 2307 provided a permanent technical correction to the TCJA pertaining to qualified improvements property.

6.  Includes sole-proprietors, independent contractors and other self-employed individuals as eligible for loans.

7.  Provides an avenue, through the US Department of Treasury, for additional lenders to be approved to help keep workers paid and employed.  

8.  Waives both borrower and lender fees for participation in the Paycheck Protection Program

9.  Waives the credit elsewhere test for funds provided under this program.

10.  Waives collateral and personal guarantee requirements under this program.

Please keep in mind this is not an all inclusive list.  These are just a few highlights.  Always seek the guidance and advice of your tax professional.  If you do not have one, we're always available.

11.  Requires eligible borrowers to make a good faith certification that the loan is necessary and the funds will be used to retain workers and maintain payroll, lease, and utility payments.

12.  Provides a limitation on a borrower from receiving this assistance and an economic injury disaster loan through SBA for the same purpose.

13.  Creates a temporary Pandemic Unemployment Assistance program through the end of this year to provide payment to those not traditionally eligible for unemployment, such as self employed, independent contractors or others with a limited work history.

Please keep in mind, this is NOT an all inclusive list.  These are just a few of the highlights.  Always seek the guidance of your tax professional.  If you do not have one, feel free to contact our office.  

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