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COVID-19 and CARES Act Resources

Last Updated: April 27, 2020

Below is a summary of CARES Act details and links to resources you may find helpful at this time. 

Tax Filing Dates

  • The deadline to file and pay 2019 income taxes has been extended to July 15, 2020 (rather than the typical April 15). 
  • The deadline for estimated quarterly payments (Q1 and Q2) has also been extended to July 15. 

More Info: IRS Deadlines

Recovery Rebates

All US residents will receive direct payments of: 

  • $1,200 each
  • Plus $500 per child under age 17
  • Subject to income limits that begin to phase out at $75,000 AGI ($150,000 for married couples)

Your payment will be direct deposited to the bank account on file starting in late April (but could take several weeks). If you wish to add or update your direct deposit banking information, click here.

More Info: IRS Economic Impact Payments

Retirement Plan Withdrawals 

The act provides more flexibility for retirement plan and IRA “coronavirus-related distributions” taken in 2020, as it:

  • Permits in-service distributions for many plans that may not otherwise allow
  • Waives the 10% early distribution penalty if under 59 ½
  • Delays the time period in which the taxes are attributable and payback can be made

Required Minimum Distributions (“RMDs”)

  • RMDs for 2020 are waived for both employer plans and IRAs. 
  • This includes inherited IRAs

Unemployment Benefits

The CARES Act expanded unemployment benefits by the following:

  • Expanding eligibility, including the self-employed and others who would normally not be eligible for unemployment
  • Increasing the amount of unemployment benefits by $600/week for up to four months
  • Increasing the duration of unemployment benefits by 13 weeks

More Info: DOL Unemployment 

Small Business Assistance

Paycheck Protection Program

The "PPP" as it's being called established forgivable loan option through the Small Business Administration (SBA).

What types of businesses are eligible?  

  • Any business, nonprofit, veterans group, or tribal business with 500 or fewer employees, or a number set by the Small Business Administration (SBA) for the relevant industry
  • Sole proprietors, independent contractors, and eligible self-employed workers
  • Hotel and food service chains with 500 or fewer employees per location

What can the loans be used for?

  • Eligible payroll costs
  • Healthcare benefits
  • Rent or mortgage payments
  • Utility costs

Loan Forgiveness: 

  • The loans may be forgiven so long as the borrower makes a “good faith certification” that they’ll use the funds to retain workers and only use funds for the above expenses. 
  • The loans are subject to caps on total amount and individual employee compensation.

Where to Apply for a Loan: Loan process will flow through SBA authorized banks so contact your lender.  We suggest also consulting with your CPA before proceeding in the loan process.

More Info: PPP 

Emergency Injury Disaster Loan - Emergency Advance

This EIDL advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.

More Info: EIDL Loan Advance

SBA Express Bridge Loans

Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

More Info: SBA Express Bridge Loans

SBA Debt Relief

The SBA is providing a financial reprieve for existing SBA loans. Click Here for details. 

Other small business provisions include an Employee Retention Credit, delay of payment of payroll taxes, and loosening of Net Operating Loss rules.

More Info: SBA Debt Relief 

The above information is intended to highlight some of the key provisions of the CARES Act but this legislation is complex and still evolving. Virtually every aspect has  nuances and caveats that could impact one's eligibility. Please contact us to further research any provisions of the act that may impact you. 

Or for more information: Click HERE.

Front Line Worker Resources/Discounts

To support workers on the front lines, many companies, such as Costco, Starbucks, and The North Face are offering discounts on goods and services during this time.

Click here to see some of the offerings we found. 

Further Reading:

Treasury Department Assistance for Small Businesses

Paycheck Protection Program Fact Sheet

SBA Small Business Guide and Loan Resources

CARES Act Highlights

Important Information: Securities and Advisory services provided by LPL Financial, member FINRA/SIPC. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

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