2020 Emergency business funding

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Here is what you need to know about the emergency funding program

      

Worried about how to steer your small business out of   the COVID-19 crisis? One of the savviest moves a small business owner can   make right away is be among the first to leverage the Coronavirus Act,   Relief, and Economic Security Act (the "CARES Act") (H.R. 748) that   President Trump signed into law on Friday, 27th March.  Acting now could   make the crucial difference to your company’s financial health and well-being   (not to mention, your own stress levels). 


We get that.   That is why our team has worked round-the-clock this past weekend and put   together a user’s manual to understanding and taking full advantage of the   opportunities afforded by the CARES Act. Read on to see how you can create   strategies for both your business and employees to deal with the current   crisis.


The CARES Act did a lot for   businesses of all sizes. Our team of professionals, would like to elaborate   on some of the notable new initiatives that could have an important impact on   you and your company:


· Establishment   of Federally backed loans. This removes much of the red tape many businesses   traditionally encounter.


· This section of the act is   focused primarily on getting funds to small businesses such as yourself,   quickly and efficiently in order to allow you to continue to employ your team   and not to lay off more people. Businesses such as yourself, quickly and   efficiently in order to allow you to continue to employ your team and not to   lay off more people.


· It is an attempt to provide   loans to businesses to ensure they can continue to pay salaries for employees   that are unable to work due to locally mandated quarantines.


· Small business loan forgiveness


· Your company   may qualify for forgiveness of the loan amounts used during the 8 weeks after   the origination of the loan if you spend the funds on the qualifying expenses.


· Emergency   grants to businesses up to $10,000 for payroll


· Affected and   eligible companies can apply for an advance of funds up to $10,000 for sick   leave, maintaining payroll, rent, debt obligations that the administrator   must respond to within 3 days.


· Payroll tax   deposit deferral


· The CARES Act   allows employers to retain the cash they would normally pay in for the   employee and employer portions of FICA and SS taxes.

 
 

· These must be   paid in over the next two years at 50% per year.


· Net Operating Losses allowed to be carried back and   offset 100% of income not limited to 80%


· An increase in deductible business interest from 30%   to 50%


· The waiving of the 10% penalty on the early   distribution of retirement funds.


· Acceleration of AMT tax credits


· The immediate expensing of qualified improvement   property


· Tax-free payment employer payment of employee   student loans.