The Blue Arrow CPAs team is dedicated to helping you through the extraordinary circumstances we are facing. Our Remote Client Assistance service has been expanded, and our whole team is working heart and soul from home without having to face pay cuts.
If you have any questions, please contact us, and we will respond within 24 hours.
The CARES Act
On 27th March 2020, the CARES act (the Coronavirus Aid, Relief, and Economic Security Act) was signed into law by Congress and President Trump, offering taxpayers’ relief from new coronaviruses (COVID-19) as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. It is a vital piece of law aimed at providing consumers and corporations with about $2 trillion in financial assistance.
The CARES constitution gives for the reimbursement of the COVID-19 outbreak via the Coronavirus Relief Fund to businesses, both large and small. The following are required for small businesses as per the 800-page legislation:
Paycheck Protection Program (PPP) Loans:
The Small Business Administration (SBA) has announced the PPP plan, a loan supporting companies to maintain their employees in the Coronavirus crisis (COVID-19). The scheme will provide cash-flow relief to businesses to sustain their payroll during this crisis through 100% federally guaranteed loans. If businesses retain their wages, the debts will be compensated to encourage employees to stay working and promote the Small businesses to be harmed, and our economy gets back faster following the downturn.
PPP has many positive attributes, including repayment of wages of up to eight weeks, depending on staff retention and pay scales. The good news is there is also no SBA fees and no deferment for at least six months, with maximum delays of one year. Between 15 February, 2020, and 30 June 2020, smaller firms and other qualifying entities were to apply if they are affected by COVID-19.
Even though the program officially is closed, small businesses are still welcome to apply through any existing SBA 7(a) lender or federally backed depository institution.
Economic Injury Disaster Loans (EIDL)
This incentive creates financial relief for small and non-profit companies with temporary sales losses currently occurring. Small businesses, including agricultural companies and non-profit organizations, can request an Economic Disaster Loan concerning the Coronavirus pandemic (COVID-19) in all US states, Washington D.C., and regions. The EIDL program is intended to give the companies currently going through a sudden loss of coronavirus sales (COVID-19), with financial relief.
Who is Eligible?
Due to coronavirus (COVID-19), the low-interest loan primarily qualifies for small business owners and registered agricultural businesses in U.S. provinces and territories. As a result of the new conferences authorized by Congress regarding the COVID-19 pandemic, agricultural firms with 500 or fewer workers are now qualified. Agricultural companies include those involved in food and fiber processing, poultry and farming, fisheries, and other associated sectors in agriculture.
SBA Economic Injury Disaster Loan (EIDL) grants include an emergency advance of up to $ 10,000 to small companies and private non-profits affected by COVID-19 within three days after the filing.
SBA Express Bridge Loans
This loan helps small companies who are already operating with an SBA Express loan to access up to $25,000 easily. Express Bridge Loan Pilot Program offers easy entry to up to $ 25,000 for small companies already having business relationships with an SBA Express loan.
These funds may enable small companies to resolve the transient loss of income they face, whether by emergency loans or to fill the gap when filing for an SBA Economic Disaster Loan. While awaiting the decision and payment on an Economic Injury Disaster Loan, a small business can claim an SBA Express Disaster Bridge loan. For more information on debt relief, visit the Small Business Association
Funding Options for Coronavirus:
Small firms in our nation face unparalleled economic instability due to the outbreak of the Coronavirus (COVID-19). The CARES act containing $376 billion in assistance for American employees and small companies was signed into law on Friday, 27 March 2020.
Besides, the SBA shall pay six months' principal, interest, and related charges owing in respect to all existing 7(a), 504, and periodically serviced Microloans, and new 7(a), 504, and Microloans, before September 27, 2020, as part of the coronavirus loan recovery efforts. For existing home and office damage loans, SBA offers immediate deferrals by 31 December 2020 if your crisis loan is in a state of "normal operation" on 1 March 2020.
Please feel free to contact your Loan Services Office directly by using the relevant info if you have queries about your existing lender or whether or not your loan will automatically be postponed.
Birmingham Disaster Loan Servicing Center:
El Paso Disaster Loan Servicing Center:
Other Significant Provisions
Includes direct payments
to adults of up to $1,200 or less, and for children, it is $500 ($3,400 for a family of four) to be sent out in weeks—payments phase-out based on income ranging from $75,000 to $99,000.
Expanded Unemployment Insurance:
Payments in addition to federal unemployment programs are boosted by $600 a week for four months.
Amendments to the New Paid Leave Mandates:
Reduces to sums provided by the reimbursable payroll tax credit the employees have to compensate for the paid sick and family leave under *.
The federal government is currently finalizing the details and procedures to implement and implement the various programs and reliefs. As per the duty, Blue Arrow CPAs is tracking the guidelines closely and promptly providing the customers with reliable details.
Guidance for Businesses and Employers
Coronavirus Guidelines for America by the President Governmental Instructions
What we can do:
Now is the time for all the documents to be organized to enforce them as soon as it becomes accessible. As standard procurement processes would have little time, specialist expertise must be available on your side.