On March 22, 2020, The U.S. House of Representatives passed the coronavirus relief package, known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide fast economic assistance to individuals and businesses that have been affected by the pandemic. The $2 trillion response bill is the third aid package from Congress and is intended to protect the American people from the public health and financial impacts of COVID-19. The 2020 Coronavirus stimulus package delivers relief through a wide range of measures and during my weekly Livestreams, I’ve had the opportunity to talk a bit about this. Today, I want to dig a bit deeper and answer some of the key questions I’ve received about the stimulus package. If you have additional questions on this topic, join us Saturday at 10 a.m. MT for our weekly Navigating the New Normal Livestream and ask your questions on chat. Becky and I may answer it live! You can join the Livestream by going to wealthbuilders.org and clicking on the banner below the main video.
CARES Act Q-and-A
How do businesses qualify for a loan?
The U.S. Department of the Treasury and the Small Business Administration (SBA) released the application for businesses to apply for loans under the Paycheck Protection Program on March 31, 2020. The program, which was established under the CARES Act, provides loans to small business owners to cover payroll, qualified utility payments, mortgage payments, rent payments, and other debt obligations. Under the CARES Act, qualifying businesses include those with 500 employees or fewer, nonprofits, self-employed individuals who receive a 1099, and businesses in the service industry with less than 500 people at each individual location. The program was designed by Congress to make funds directly and easily available to businesses through approved banks and nonbank lenders. The best way to stay up to date with the latest information is to visit the U.S. Small Business Association’s website.
What are emergency economic injury disaster loans?
Typically speaking, The Small Business Administration (SBA) provides low-interest loans during disasters in order to help businesses and homeowners recover. According to the SBA, “Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).”
The CARES Act is allowing low-interest EIDLs of up to $2 million. This helps to cover expenses that otherwise would not be affordable because of the pandemic. This includes things like payroll, rent, and fixed debts. An eligible borrower may apply for loans under EIDL and the Paycheck Protection Program (PPP), as long as they are for different expenses. Per the SBA, “The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.”
Are tax deadlines delayed?
The CARES Act does provide several temporary tax relief provisions aimed to benefit both individuals and businesses. Several tax deadlines have been extended and provisions have been made in relation to income taxes. To learn more about tax payment delays, read a comprehensive overview on the taxfoundation.org.
Where can I go to learn more?
If you haven’t heard yet, WealthBuilders has partnered with Chad Frantzen and Authentic Counsel, LLC to offer WealthBuilders Investment Services. Chad is a twenty-year veteran of the financial services industry and the founder of Authentic Counsel, a registered investment advisor. Chad also holds an accreditation as a CERTIFIED FINANCIAL PLANNER™.
WealthBuilders Investment Services is designed to serve Christian entrepreneurs, business owners, and investors in the area of wealth creation, investing, and financial planning based on biblical wisdom. Due to the economic effect of the current global COVID-19 crisis, many people today are now needing to revisit their overall financial plan and investment strategy. WealthBuilders Investment Services is here to help by walking alongside you during these unprecendented times.
If you are looking for sound financial planning and investment management services based on Biblical ethics and a kingdom worldview, please click here to learn more and start your own personal investment review today.
This article was made in partnership with Chad Frantzen of Authentic Counsel, LLC. To view the newsletter Authentic Counsel created which covers a summary of the CARES ACT (Covid-19 Response) as it applies to individuals and small business owners, click here.
Navigating the New Normal Livestream
In light of the current situation, I’ve been flooded with excellent questions pertaining to business, real estate, the stock market, and more. During this time, it’s more important than ever to reach out and ask questions. Becky and I have been doing our best to answer all of your questions on our weekly Livestream that takes place every Saturday morning at 10 a.m. MT. If you haven’t had the chance to tune in, I strongly encourage you to visit the wealthbuilders.org homepage and register for this week’s Livestream. I know we are living in an unprecedented time that can bring unique challenges, but the WealthBuilders community is here to provide you with the necessary resources to help you thrive, not just survive. We’re all in this together and with each other, we can find the Kingdom opportunities in every challenge.