[vc_row bg_image=”19717″ top_padding=”300″ bottom_padding=”110″ bg_position=”center center”][vc_column width=”1/1″][minti_headline font=”font-special” size=”fontsize-xxxxl” color=”#ffffff” weight=”fontweight-700″ lineheight=”lh-12″ class=”lowercase”] KEY QUESTIONS & ANSWERS[/minti_headline][minti_headline type=”h4″ font=”font-special” size=”fontsize-m” color=”#ffffff” weight=”fontweight-700″ lineheight=”lh-12″ class=”lowercase”]CARES ACT (Coronavirus Aid, Relief and Economic Security Act)
AND THE SBA ECONOMIC INJURY DISASTER LOAN PROGRAM[/minti_headline][vc_row_inner][vc_column_inner width=”1/3″][/vc_column_inner][vc_column_inner width=”1/3″][minti_button link=”https://stanyc.conferencecenterpresents.com/covid19/” color=”color-7″]Back to STA COVID-19 Bulletins[/minti_button][/vc_column_inner][vc_column_inner width=”1/3″][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row top_padding=”50″ bottom_padding=”0″ bg_position=”left top”][vc_column width=”1/1″][vc_column_text]

Publication 1

[/vc_column_text][minti_spacer height=”30″][/vc_column][/vc_row][vc_row top_padding=”0″ bottom_padding=”50″][vc_column width=”1/4″][vc_column_text][/vc_column_text][vc_column_text]Hank Kita
Executive Director
Subcontractors Trade Association[/vc_column_text][/vc_column][vc_column bg_color=”#eaeaea” width=”3/4″][minti_spacer height=”30″][vc_column_text]

AN IMPORTANT READ FOR CONTRACTORS

STA is committed to keeping you up-to-date with simple, easy-to-understand information. The recently passed CARES Act provides for economic stimulus for businesses and individuals,  We have gathered frequently asked questions with answers to information you will need to know as you make decisions about your business.

This publication is organized into three parts:

1. Key Q&A: The CARES Act
2. Key Q&A: SBA Economic Injury Disaster Loan Program
3. Useful Links

Take a read, and be sure to consult your attorneys, accountants and advisors on how best to navigate the new laws.

Stay Safe, Stay Strong![/vc_column_text][minti_spacer height=”30″][/vc_column][/vc_row][vc_row top_padding=”0″ bottom_padding=”0″ row_id=”1″ bg_position=”left top”][vc_column width=”1/1″][minti_headline font=”font-special” size=”fontsize-xl” weight=”fontweight-700″ transform=”transform-uppercase” align=”align-left” margin=”0 0 0 0″]1. KEY Q&A: CARES Act[/minti_headline][vc_column_text]Click on the orange tabs for more details.[/vc_column_text][minti_divider margin=”10px 0 25px 0″][minti_toggle title=”1. What is the CARES Act?” open=”true”]The CARES Act is a federal law which provides federal economic stimulus for businesses and individuals.  The CARES Act was signed by President Trump on March 27, 2020 after having been passed by the U.S. Senate and U.S. House of Representatives.  This law allocates $2.2 trillion in spending and tax breaks to increase liquidity in the economy, provide relief for individuals and businesses, as well as specific industries most seriously harmed by the Coronavirus pandemic.

Important tax provisions for businesses include deferrals of employer payroll tax liabilities coupled with an employee retention tax credit, rollbacks of Tax Cut & Jobs Act limitations on net operating losses (NOLs), deferral of the business interest limitation under Section 163j and a technical correction on qualified improvement property (QIP) that benefits taxpayers.[/minti_toggle][minti_toggle title=”2. What are the eligibility requirements for that portion of the CARES Act dealing with Small Business Interruption Loans/”Paycheck Protection Program” (i.e. forgivable loans related to COVID-19)?”]Eligibility for businesses including sole proprietorships, nonprofits, and self-employed must have fewer than 500 employees and meet the Small Business Administration’s industry-based “size standard” requirements for the applicable North American Industry Classification System (NAICS) code, based on either the number of employees or annual receipts.

In addition, the business must have been substantially affected by COVID-19 which is defined as:

[/minti_toggle][minti_toggle title=”3. What is the loan amount and duration of a loan that an eligible business can receive under the CARES Act?”]The maximum maturity of the loan is 10 years.  The amount of a loan can be the lesser of:

[/minti_toggle][minti_toggle title=”4. What are the allowable uses for a loan under the CARES Act?”]Loans under the Act can be used for:

[/minti_toggle][minti_toggle title=”5. What are the terms for loan forgiveness under the CARES Act?”]An eligible business recipient under the Act is eligible for forgiveness of indebtedness in an amount equal to the cost of maintaining payroll continuity and other allowable costs during the covered period (8 weeks from loan origination) compared to the previous year.

The directive from the SBA at this time states that under this program “all” employees are to be kept on the payroll.  While union employees are not specifically mentioned in the SBA directive, it appears that union employees will be counted in any employee headcount.  Anyone laid off/furloughed, that is hired back, would count to the restoration of full time employee levels.  Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full time headcount declines, or if salaries and wages decrease. Reductions in workforce salaries and wages that occur from February 15, 2020 to April 26, 2020 will be disregarded for the purposes of reducing the forgiveness amount, as long as the reductions are eliminated by June 30, 2020.  The borrower (business) must submit to the lender an application including documentation verifying the number of full-time equivalent employees on payroll and other costs included in the allowable uses for a loan under the Act including:

The amount of any loan forgiveness will be reduced by any reductions in employee wages, in excess of 25% for any employee, or a reduction in the number of employees during the period covered through June 30. 2020.[/minti_toggle][minti_toggle title=”6. Is any canceled indebtedness under the CARES Act taxable?”]Any canceled indebtedness under this portion of the Act is to be excluded from gross income.[/minti_toggle][minti_toggle title=”7. What other things should I know about loans under the CARES Act “Paycheck Protection Program”?”]

[/minti_toggle][minti_toggle title=”8. What about businesses with more than 500 employees, are they eligible under the CARES Act for economic relief?”]Yes, they are eligible, but under another section of the Act that allows for credit support for these businesses.  The terms and conditions of that program differ significantly from the Small Business Interruption Loans/Paycheck Protection Program.[/minti_toggle][minti_spacer height=”30″][/vc_column][/vc_row][vc_row bg_color=”#f2f2f2″ top_padding=”0″ bottom_padding=”0″ row_id=”2″ bg_position=”left top”][vc_column width=”1/1″][minti_spacer height=”30″][minti_headline font=”font-special” size=”fontsize-xl” weight=”fontweight-700″ transform=”transform-uppercase” align=”align-left” margin=”0 0 0 0″]2. KEY QUESTIONS: SBA ECONOMIC INJURY DISASTER LOAN PROGRAM[/minti_headline][vc_column_text]Click on the orange tabs for more details.[/vc_column_text][minti_spacer height=”5″][vc_column_text]The SBA Economic Injury Disaster Loan Program was implemented as “Phase II” relief for businesses in the recent federal stimulus initiatives.  It should be noted that this program is different than the previously described “Phase III” program.  Participation in this program may make the borrower ineligible for participating in the Phase III program.[/vc_column_text][minti_divider margin=”10px 0 25px 0″][minti_toggle title=”1. What is the size of loans allowable under the SBA Economic Disaster Loan Program?” open=”true”]Loan under this program can be made in amounts of up to $2 million.[/minti_toggle][minti_toggle title=”2. What is the interest rate and term length for loans under this program?”]The interest rate for loans under this program is 3.75%.  The term length of the loan may vary but will not exceed 30 years.[/minti_toggle][minti_toggle title=”3. For what types of uses can I utilize a loan under this program?”]These loans can be used for accounts payable, fixed debts, payroll, and other bills due to the virus.[/minti_toggle][minti_toggle title=”4. What types of information and documentation will I have to provide in applying for a loan through this loan program?”]Supporting documentation may include your business’ most recent tax return, a personal financial statement, and a schedule of liabilities that list all of your current debts.[/minti_toggle][minti_toggle title=”5. How do I apply for a loan under the SBA Economic Injury Disaster Loan Program?”]One can directly apply to the SBA at https://disasterloan.sba.gov/ela/.  Select “economic injury” as your reason for applying.[/minti_toggle][minti_spacer height=”30″][/vc_column][/vc_row][vc_row top_padding=”0″ bottom_padding=”0″ row_id=”3″ bg_position=”left top”][vc_column width=”1/1″][minti_spacer height=”30″][minti_headline font=”font-special” size=”fontsize-xl” weight=”fontweight-700″ transform=”transform-uppercase” align=”align-left” margin=”0 0 0 0″]3. USEFUL LINKS[/minti_headline][vc_column_text]For additional information on topics covered in this Advisory, please go to the U.S. Department of Labor and New York State Department of Labor websites as follows:[/vc_column_text][minti_divider margin=”10px 0 25px 0″][vc_row_inner][vc_column_inner width=”1/3″][minti_button link=”https://www.dol.gov/general/topic/unemployment-insurance” target=”_blank” size=”full”]Employee Eligibility-USDOL[/minti_button][/vc_column_inner][vc_column_inner width=”1/3″][minti_button link=”https://www.dol.gov/agencies/whd/fmla/pandemic” target=”_blank” size=”full”]COVID-19 and Family Paid Sick Leave Provisions[/minti_button][/vc_column_inner][vc_column_inner width=”1/3″][minti_button link=”https://labor.ny.gov/unemploymentassistance.shtm” target=”_blank” size=”full”]Employee Eligibility-New York State[/minti_button][/vc_column_inner][/vc_row_inner][minti_spacer height=”30″][minti_headline font=”font-special” size=”fontsize-xl” weight=”fontweight-700″ transform=”transform-uppercase” align=”align-left” margin=”0 0 0 0″]For More Information[/minti_headline][vc_column_text]Members with additional questions on how any of these laws relate to your specific company are urged to consult with your attorney, accountant, or other business advisor.

Publication Date
This publication is up-to-date as of April 1, 2020. Continue to consult the STA COVID-19 Resource
Webpage for more information: www.stanyc.com/covid19[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][minti_spacer height=”30″][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][minti_spacer][vc_raw_html]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[/vc_raw_html][/vc_column][/vc_row]

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