Daily Update COVID-19 From the Business Accountants at Wouch Maloney

Early Indications About Navigating Through the CARES Act

There is a lot of information on the CARES Act circulating across all media outlets in an attempt to figure out the benefits of loan programs, credits, net operating losses, etc. There are still many questions about the process of obtaining loans, the application process and the timing of receiving relief. Loans under this program are forgiven if you meet certain criteria. Our primary focus is on provisions of the CARES Act that will minimize the financial stress to all our clients and friends.

We encourage you to contact your bank and ask them to provide you an application for loans available under the CARES Act. Banks across America are hurrying to put procedures in place to help their neighbors and friends. Everyone we speak to is working diligently to provide as much information as possible to their customers and colleagues.

We sense an underlying theme with everyone. Gather financial information that will be necessary in obtaining a loan under the Paycheck Protection Program. There is no guidance on the information that will be required but we want you to be prepared.

Based on what we have seen and heard, we recommend you spend the time now to gather the following financial information:

  • Income tax returns for 2018 and 2019
  • Financial statements for 2018 and 2019
  • For at least the previous 15 months (January 1, 2019 to March 31, 2020)
  • Wage summary, by employee
    • Unemployment taxes paid
    • Health insurance benefits paid by employee and employer, on a monthly basis
    • Union benefits paid, if any, on a monthly basis
Each borrower will be required to certify:
  • The uncertainty of the current economic conditions makes the loan necessary to support ongoing operations
  • The funds will be used to retain workers and maintain payroll, make mortgage interest payments, pay rent and utility payments
  • There is no other application pending for a loan for the same purpose and duplicate amounts have not been received.
  • There have been no other loans received from February 15, 2020 until December 31, 2020 for the same purpose
Speak to your tax and financial advisor about the program that works for you. Please know we are available to speak with you by phone at 215-675-8364 or email at info@wm-cpa.com. You may also visit our News page for updates.
DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

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