Small Business Administration CARES Act

Tax
Filling

What is it?

Changes tax day from April 15 to July 15, 2020

Time Period

April 15, 2020 – July 15, 2020

Eligibility

All US Taxpayers

What’s Available

Delay of filing requirements for tax returns and estimated payments

What are the Term

No terms

How to Apply

No application necessary.

For More Information

www.IRS.gov

Unemployment
Insurance

What is it?

States suspend waiting period for unemployed applicants

Time Period

April 1, 2020 – December 31, 2020

Eligibility

All eligible laid-off or terminated employees

What’s Available

States suspend traditional waiting period of 1-2 weeks and begin immediate payments on application

What are the Term

Standard Unemployment periods are extended for additional 13 weeks of coverage up to 12/31/2020

How to Apply

Via individual State Unemployment portals

For More Information

Visit your State Unemployment Services website

Short-Time Unemployment
(Shared Work Programs)

What is it?

An alternate to layoffs for Employers, Work Share programs administered by the State (28 states currently active) where Employer can keep people employed and working less than regular hours while simultaneously drawing unemployment insurance

Time Period

April 1, 2020 – December 31, 2020

Eligibility

All employers

What’s Available

The amount of Unemployment Compensation paid to individuals filing for STC is a pro-rated portion of the Unemployment Compensation payment they would have received if they were totally unemployed.

What are the Term

Employer must apply to the program for each State in which they have employees. Once an employer is registered, employees may begin to apply for and receive benefits.

How to Apply

Employer must apply to the program for each State in which they have employees.

For More Information

Check with each State’s Department of Labor, Unemployment Compensation website.

Pandemic
Assistance
Unemployment

What is it?

Payment of additional $600 per week of State administered unemployment insurance to eligible individuals. In addition, a new classification of unemployment for Independent Contractors, Sole Proprietors and 1099 workers which allow them to be eligible for special unemployment weekly payments

Time Period

Eligibility begins March 28, 2020 – July 31, 2020

Eligibility

Individuals collecting regular Unemployment Compensation (UCFE, UCX), as well as the following: Pandemic Emergency Unemployment Compensation (PEUC); Pandemic Unemployment Assistance (PUA); Extended Benefits (EB); Short­Time Compensation (STC); Trade Readjustment Allowances (TRA); Disaster Unemployment Assistance (DUA); and payments under the Self-Employment Assistance (SEA) program.

What’s Available

$600 per week compensation in addition to any other State benefits that the applicant is eligible to receive.

What are the Term

Suspends State’s 1 week waiting period to begin receiving benefits. Benefits will end after payments for the last week of unemployment before July 31, 2020

How to Apply

Apply via your individual State Unemployment Compensation website

For More Information

Check with each State’s Department of Labor, Unemployment Compensation website.

Employee
Retention
Credit

What is it?

The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID19.

Time Period

Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit.

Eligibility

All employers regardless of size, including tax-exempt organizations. (State & Local government not included). Employers that receive a PPP loan are NOT ELIGIBLE for tax credit.

What’s Available

The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.

What are the Term

Qualifying wages are based on the average number of a business’s employees in 2019. If employer had 100 or less on average in 2019, credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full time work, the employer still receives the credit. If the employer had > 100 employees on average in 2019, credit is allowed only for wages paid to employees who did not work during the calendar quarter.

How to Apply

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

For More Information

www.IRS.gov

Sick / Emergency
Leave

What is it?

Federal Law that requires Employers to provide paid time off for all employees that are out of work for sickness or emergency – COVID-19 related reasons.

Time Period

March 18, 2020 – December 31, 2020

Eligibility

All businesses that have employees

What’s Available

Immediate and 100% reimbursement to employers who provide paid sick / emergency leave to affected employees.

What are the Term

Relief to employers is via refundable payroll tax credits. When an employer files a 941, they can immediately apply the credit on all employer portion of federal taxes. If the credit is larger than the applicable tax, the employer can file for a refund of the overage.

How to Apply

No application necessary. Calculate credit per guidelines and submit with 941 filings to offset payment of applicable federal income taxes.

For More Information

www.IRS.gov

SBA Express
Bridge Loan

What is it?

Fast-turn around loan of $25,000 that allows authorized SBA Lenders to provide immediate Working Capital loans to their existing customers.

Time Period

Applications can be made from March – December 2020

Eligibility

Small Businesses who have a relationship with a SBA Express Lender

What’s Available

$25,000 immediate bridge loan which can be used while business is awaiting EIDL.

What are the Term

Fast turnaround, 36hr SBA approval, immediate disbursement which is repaid in full or in part by proceeds from EIDL loan. There are fees and interest applicable.

How to Apply

Direct with a Lender that the Borrower has a relationship with. Lender must also be SBA approved Express Lender.

For More Information

Contact your Banker

SBA – Economic Injury
Disaster Loan (EIDL)

What is it?

SBA DIRECT LOAN which provides Working Capital loans to any small business affected by COVID-19 health emergency

Time Period

Applications can be made from March – December 2020

Eligibility

For businesses that have sustained “economic injury” as a result of the COVID-19 health emergency

What’s Available

Direct SBA loans, up to $2million, per individual borrower.

What are the Term

Up to $2million loan amount, 3.75% fixed rate, up to 30 years term, payments can be deferred up to 6 months.

How to Apply

Direct with SBA at www.SBA.gov

For More Information

www.SBA.gov

Paycheck Protection
Program (PPP)

What is it?

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Short-term Lender provided loan to any small business and independent contractor which provides funds to continue to pay employees over an estimated 8 week period.

Time Period

Lenders may begin processing loan applications 4/3/2020 for Business / Sole Proprietor and 4/10/2020 for Independent Contractors and those Self-Employed. Last day to apply is June 30, 2020

Eligibility

Small Business with <500 employees, tax exempt nonprofits, those self employed or sole proprietors. Must be in operation on 2/15/2020 and had employees or paid independent contractors.

What’s Available

Up to 2.5 times the average monthly payroll expense of the business borrower.

What are the Term

Maximum loan amount is $10million. Loan is 100% forgivable if used as designed, has an interest rate of 1%, no fees and is for a 2 year term. SBA guarantees these loans 100% with no recourse, no collateral, no personal guarantee required. Payments deferred for 1st six months.

How to Apply

Direct with any SBA Lender or federally insured depository institution, credit union or Farm Credit System institution.

For More Information

www.SBA.gov

Debt
Relief

What is it?

6 months of payment relief for existing borrowers of SBA 7(a), 504 or Micro loans and future borrowers who take out a loan on or before 9/27/2020

Time Period

Current borrowers PLUS all future borrowers who have loans issued prior to 9/27/20

Eligibility

All borrowers who have existing loans as of March 1, 2020

What’s Available

6 months whereby the SBA makes all required principal, interest and fee payments for the borrower.

What are the Term

Must apply for “Debt Relief”

How to Apply

Contact existing Lender that is servicing your loans and request “Debt Relief for COVID-19”

For More Information

www.SBA.gov

Retirement Plans
& Accounts

CARES Act suspends 10% penalty for withdrawal up to $100k for those younger than 59.5 yrs old.
Withdrawals can be re-contributed within 3 years without penalty.
Minimum distributions (RMDs) are waived in 2020
Plan sponsors may postpone minimum funding contributions until 1/1/2021.

Qualified Improvement
Property

CARES Act amends 2017 Tax Cuts and Jobs Act to accelerate depreciation on QIP
Changes depreciation from 39 years down to 15 with 100% bonus depreciation available for all assets with 20 years or less useful life.

Net Operating
Loss Rules

Businesses with tax losses during 2018, 2019, 2020 permitted to carry the loss back for up to 5 years.
Losses carried forward to 2019 and 2020 will be permitted to offset 100% of taxable income.

Business Brokerage | Mergers & Acquisitions | Business Broker | Business Advisor | Valuation | Selling a Business | Southern California | Northern California | Northern Nevada | Southern Nevada | Los Angeles Business Broker | Ventura Business Broker | Orange County Business Broker | San Diego Business Broker | San Francisco Business Broker | Marin Business Broker | San Jose Business Broker | Palo Alto Business Broker | Sacramento Business Broker | Roseville Business Broker | Reno Business Broker | Sparks Business Broker | Las Vegas Business Broker
 

M&A Business Advisors represents sellers and buyers of privately owned businesses in a wide range of industries in California and Nevada. Our services include Selling a Business, Buying a Business, Mergers & Acquisitions, Business Sales and Acquisitions, Valuations, Opinion of Value, SBA Finance and Business Consulting. Sell your Business, Buy a Business, How do I determine the Value of a Business, How do I Sell my Business Confidentially, What is a Safe Way to Sell my Business, How long does it take to Sell a Business, How do I Sell a Business in California, How do I Sell a Business in Nevada, Search Businesses for sale. We represent Sellers and Buyers in Southern California, Los Angeles County, Orange County, Ventura County, Santa Barbara County, Kern County, San Bernardino County, Riverside County, San Diego County, Los Angeles, Torrance, Gardena, South Bay, San Fernando Valley, San Gabriel, Upland, Woodland Hills, Chatsworth, North Hollywood, Van Nuys, Burbank, Glendale, Pasadena, Santa Clarita, Palmdale, Thousand Oaks, Ventura, Camarillo, Anaheim, Irvine, Santa Ana, Huntington Beach, Newport Beach, Fullerton, Laguna Beach, Aliso Viejo, Rancho Santa Margarita, Orange, Costa Mesa, Brea, Loa Alamitos, Mission Viejo, Fountain valley, San Clemente, Northern California, San Jose, San Francisco, Oakland, San Ramon, Napa, Sacramento, Nevada, Northern Nevada, Southern Nevada, Reno, Carson City, Tahoe, Las Vegas.