This is a DRAFT - Paycheck Protection Program, which is a program created by the CARES Act, is now open for application for small businesses and sole proprietors.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
This program could help you and your company obtain loans to help with payroll costs, interest on mortgages, rent, and utilities.
You can also access this Small Business Administration backed program by reaching out to the bank with whom you already have an established banking relationship.
The Economic Injury Disaster Loan Program is also taking applications as a part of the CARES Act program. The program will allow you to get a loan advance of up to $10,000 of economic relief for businesses that are currently experiencing temporary difficulties.
Both programs are meant to support small scale businesses. The President signed into law more than $376 billion Treasury funds as crucial support for businesses during this time. This fund is now available.
As a small business, you may be able to apply for both programs, subject to additional requirements and so long as the funds are used for different purposes.
How You Apply:
These programs are available to help you get access to needed relief and capital quickly. Here are steps to make the process as frustration-free as possible:
Visit the Small Business Administration’s COVID-19 (SBA) resource center to review all programs
Confirm your eligibility - small businesses, including sole proprietors and independent
contractors may be eligible, and the loans may be forgiven if certain conditions are met.
You can also apply at your existing bank for the Paycheck Protection Program using any of these applications:
For better assessment - The SBA has 68 District Offices, as well as support provided by its Resource Partners, such as SCORE offices, Women’s Business Centers, Small Business Development Centers and Veterans Business Outreach Centers. When faced with a business need, use the SBA’s Local Assistance Directory to locate the office nearest you.
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Can Coronavirus Aid, Relief, and Economic Security (CARES) Act support all the millions of freshly unemployed Americans?
THIS IS A DRAFT - The first coronavirus relief package costing $2.2 trillion was enacted on March 27, 2020, Congress’s latest coronavirus relief package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest economic relief bill in U.S. history. It is intended to allocate support to individuals and businesses affected by the pandemic and economic downturn.
Many people have questions about how the new law impacts employment and businesses.
The (CARES) Act will also benefit independent contractors, subcontractors, small businesses and self-employed. Others who are eligible to receive these benefits also include those unemployed even before the outbreak, those who find themselves without a job or are affected may receive $600 per work for the next four months, courtesy of the coronavirus relief package.
What is the impact of Coronavirus Aid, Relief, and Economic Security (CARES) on TAX RETURN and as REBATES?
Tax filing and payments for tax year 2019 have been delayed until July 15. Treasury Secretary Steven Mnuchin announced that these beneficiaries will not have to submit a separate tax return to receive a rebate. The payment will be sent directly to their bank account associated with those benefits. Other taxpayers who have not filed for the past two years should submit a tax return for 2018 or 2019 as soon as possible to receive their rebate.
In the event you have not filed taxes 2019?
The IRS will look at your 2018 tax return to check for rebate eligibility. Social Security beneficiaries will still receive rebates even if they have not filed tax returns for 2018 or 2019; their rebates will be sent to the bank account associated with receiving benefits.
If I had high income in 2019 but lost my job because of the outbreak, do I still qualify for CARE ACT?
Taxpayers whose income in 2019 is above the threshold remain eligible for a partial refund. Refunds will depend in the phaseout range of the Treasury.
If I have not filed my taxes for 2019, do I still qualify for CARE ACT?
The IRS will look at your 2018 tax return to check for rebate eligibility but has also advised all taxpayers expecting a refund to file their 2019 tax return as soon as possible.
When pressing issues as large as a pandemic arises, it is imperative that those in need of assistance may collaborate with professionals, and the government to see to it that the flow of commerce may gradually return once the situation returns to normal.
As the COVID-19 outbreak tests the capabilities of the medical industry in developed and developing countries, The economy of said nations are forced into a painful standstill. As of late March, 3.2 million Americans are stranded in their own homes, prohibiting them from working and earning a stable income (NBC News, 2020). Those unlucky to be incapable of working at home face terrifying consequences that come with unemployment such as losing their homes, and shortages of basic necessities like food and medicine. In these trying times, one could ask: “Can Coronavirus Aid, Relief, and Economic Security (CARES) Act support all the millions of freshly unemployed Americans?”.
Last MARCH 11, 2020 Trump Administration Seeks Payroll Tax Cut in Response to COVID-19 Outbreak.
Source: Holland & Knight
WHAT IS PAY TAX CUT?
Payroll tax cuts is sometimes referred to as "payroll tax holidays". It is an incentive of the goverment to offer tax reduction or tax elimination program on taxable income and profits.
Tax holidays are often used by local governments to reduce sales taxes. The last time PAY TAX CUT was given by the government was during President Barack Obama, 2011 and 2012. During this time Social Security Trust Fund under the employee (and self-employed) shares of the payroll tax that would have gone to was reduced from 6.2 percent to 4.2 percent.
In the event Congress would act on President Trump's call for Congress to provide "immediate payroll tax relief" as administrations response to the econamic effect of coronavirus (COVID-19) outbreak to income wage earner and small business, tax adjustments would take effect and our team is ready to help you make the most out of it.
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