Over the last several days, we have watched and waited while our elected officials wrestled. Finally, a bill has emerged that appears to provide the relief that so many of our people and businesses need during this emergency health crises. Amazingly, this appears to be targeted in just the right areas at just the right time. In my view, this action goes a long way in restoring my faith in our national officials. I will endeavor to provide you here with several key provisions of the legislation and am attaching a full summary of the law for your reference and review.
Here are some major points of the legislation as it applies to Business:
- Paycheck Protection: this provision allows for immediate loans of up to $10million to the nations Small Businesses. Businesses that take these loans and use them to cover payroll and operating expenses may have some or all of the loan forgiven – no repayment necessary. There are no fees, no personal guarantee’s and no collateral requirements for these special loans.
- Unemployment Insurance; provides an additional $600 per week payment for up to 4 months. Also extends total benefit period by an additional 13 weeks. Special provision to provide unemployment compensation to those with reduced hours, but still at work.
- Immediate Tax Rebates; direct payments to taxpayers with work eligible social security numbers of $1,200 per adult and $500 additional per child. This applies to all US residents with adjusted gross income up to $75,000 ($150,000 married). This provision also waives the 10% early withdrawal penalty for distributions of retirement funds.
- Adjusted Charitable Contributions; temporarily increases the limit on deductions to up to 100% for individuals, 25% to corporations. Also allows employers to contribute up to $5,250 annually for student loan repayments tax free.
- Employee Retention Credit; payroll tax credit of 50% of the wages paid to employees during the Covid-19 crisis. Also allows employers to defer all social security taxes for up to 2 years.
- Net Operating Losses; special provision to allow NOL’s (net operating losses) to be carried back for up to 5 years.
There are many other provisions and special clauses for specific healthcare and other nationally important targeted industries.
At IBA, we encourage you to read this summary and familiarize yourself with what is available. In addition, we encourage you to contact your Congressman, Senator and State representatives and let them know your views on this. We are glad to see that they put aside partisanship and acted in the behalf of us as citizens.
May God continue to bless America.