One month ago today, I was in Lajitas (Big Bend), having just wrapped up the final CDLP “Champions” seminar, sitting on a porch, listening to Texas country, drinking wine and beer and solving the world’s problems with some of my dearest (TCDLA) friends. One month ago today, my biggest concern was how to fit seven days of work into three, so I could go to a seminar in Austin on Wednesday. COVID-19 was barely a blip on my radar.
Today, I am sitting in my empty office looking over the month’s receivables. Today, I am wondering how long this “shelter in place” is going to last. Today, I am cancelling every subscription I don’t need–just trying to save every little bit of money I can.
If you are like me today, I am worried about those for whom I am responsible. My staff. My family. My staff’s family. They rely on me to pay them so they can put food on the table–so they can have life’s necessities. That can be overwhelmingly stressful at times, and in particular, right now.
I am here to tell you it doesn’t have to be overwhelming. There is help, and it is called C.A.R.E.S. (Coronavirus Aid, Relief and Economic Security). I have tried to break this down as simply as I can. It is by no means comprehensive, but I hope it is helpful, because I CARE about each of you.
- Single taxpayers with adjusted gross income <$75k (2018 or 2019 tax return) or couples with AGI <$150K will receive a $1,200 payment.
- That payment will decrease $5 for every $100 AGI up to $99K.
- $500 per child.
- You do not have to take any action–the checks will just be sent.
SHORT-TERM FORGIVENESS LOANS
- $350B allocated to help small businesses (<500 employees).
- These are “special” SBA loans.
- May be partially forgiven.
- You can receive up to 250% of your average monthly payroll.
- Payroll includes wages/benefits plus rent/mortgage and utilities.
- Loans may be forgiven if you use it for “payroll.”
- Will not be treated as taxable income.
- Loans come from SBA-approved banks, credit unions and lenders.
- Up to $10K.
- Does not have to be repaid.
- Paid out within three days of applying.
- Intended for payroll, sick leave and other debt obligations.
- Apply directly with SBA.
- ***Can receive grant and forgiveness loans***
PAYROLL TAX CREDIT
- May qualify for PTC up to $10K per employee.
- Employees must be paid their wages/benefits during this time.
- Qualify if you experience 50% decrease in gross receipts from same quarter last year.
- CANNOT CLAIM PTC AND APPLY FOR SHORT-TERM FORGIVENESS LOAN
The C.A.R.E.S. Act does not address this; however, you can get up to three months deferred payments (some with and some without interest accrual) on your student loans. You must contact your lender. Let them know you want to defer payments. They cannot report this on your credit report. I contacted mine last Saturday by e-mail. I received notification this past Thursday that I will not owe any payments on my student loan until July.
I look forward to the day I get to go back to Lajitas and sit on that porch with those same TCDLA friends and listen to Hurley tell stories while Snodgrass plays his favorite Texas music, Jay Freeman chimes in with a really bad dad joke every once in a while, and Kerri and I open another bottle of wine.