The CARES Act Loans
I know that many clients have questions about the CARES Act loans. As noted in this web document is the update and documents on how to get started. While loans/money will be available at the end of this week, my experience is that the process is much slower than predicted.
On the issue of loan out companies or other 1099s for consideration of payroll loans, I do not have a definitive answer, but at the moment, the word is that only W2s are available for the payroll calculation. Those who are self-employed or receive only K-1 or 1099 funds can file their own request for the loan.
Also attached are exemplar applications. Please know that this application is from Union Bank. Other banks likely have their own, but this gives you and idea of the level of inquiry banks apparently intend to make to complete the loan. You should reach out to your lender to inquire. If that doesn’t work, please call us.
Now that Congress has provisioned the “What”, we are dependent on the Small Business Administration to issue guidance on the “How”.
While there is a tremendous amount of news coverage, I think this story captures it well.
This executive FAQ of the new program from the U.S. Senate Committee on Small Business & Entrepreneurship is a good reference for the common questions we’re receiving.
As an active SBA 7(a) lender, we will be involved in rolling out the program once the details are communicated and we want to keep you informed on the details as we have them. We have formally opened a tool where you can register to receive information on next steps as we receive guidance from the SBA.
Please understand that until we completely understand what the government expects from us we cannot opine on anything other than the facts we have. I anticipate we will get that guidance soon. But, please reach out if you need any assistance on this from Epps & Coulson, LLP.