On Friday March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act or CARES Act for short, was signed into law. The over 300 pages of the bill contained multiple emergency actions releasing funding and resources to provide economic relief to those impacted by the pandemic. Below are a few of the key points that impact our clients and links to the various resources available.
Stimulus - $1,200/Individual or $2,400/Joint returns - additional $500 for qualifying children under the age of 17
Retirement Plans – Various waivers of RMDs and Contribution Limitations, as well as penalty free early distributions on qualified plans.
Unemployment – More flexibility in availability. Must still meet base requirements to be eligible. Potentially up to $600 additional unemployment monies from the Federal Unemployment program.
Economic Injury Disaster Loan (EIDL) – The yellow bar at the top of the sba.gov website is a link to this loan application. It is the brief self-completed initial step in what is a larger loan, but this will get the $10,000 advance process started for eligible businesses. You will need the following information:
Federal Employer Identification Number (FEIN)
Cost of Goods Sold
All Owners Information who have over a 20% interest in the company
Direct Deposit Information
**If the 2019 tax return is not completed you may use 2018 figures.**
SBA Loans – Lower interest rates (currently less than or equal to 4%) and less hurdles in loan approval. Must still complete an application. In some instances loans may be forgiven, thought accrued interest may still be applicable. You will need to contact a certified SBA approved lender to complete the loan process. Most commercial lenders in our area are able to assist you with this process.
Payroll Protection Loans – An extension of the 7(a) & 7(b) loan programs through the SBA. This would allow for loans to cover payroll for small employers with less than 500 employees. In most situations the loan may potentially be forgiven. Contact your commercial lender for additional information.
Self Employed – Traditional sole proprietors who file on a schedule C and have an S/E tax obligation are eligible for the SBA loans for payroll protection and unemployment in the state of Ohio. More information is available on the respective websites.
OUR OFFICE IS CLOSED
In an effort to mitigate the risk of exposure to COVID-19 for both our clients and our staff and in accordance with Ohio Governor Mike DeWine’s recommendations and the Ohio Department of Health’s “Stay at Home” order we are choosing to close our office to the public . After 7pm today (3/23/2020) we will close until the order is lifted. Rest assured that our decision to close will not cause problems with tax returns being filed timely, or business services being interrupted as many of our staff will be working remotely during this time. Furthermore, the United States Treasury department has extended the time to file 2019 tax returns and make corresponding tax payments until July 15, 2020. Should you need to get in touch with us we will still be checking email, voicemails, traditional mail, and our drop-off box, and are encouraging clients to mail their information to us. We understand that this is an inconvenience and we want you to know that we appreciate your cooperation and understanding as we navigate this new temporary way of life. Please stay safe friends and know the Day Family is thinking of you and your families.