As we mentioned in the webinar, things are changing fast. In the past day, interpretations are coming out which may be contrary to some of the content in the video, and as such, it is imperative that you work with your own advisor to determine how the CARES Act impacts you. You should not make any decisions or take any action based on the content of the video. Although not an exhaustive list, here are a few items to consider:
- The loan term appears to now be 2 years at 0.5% instead of the maximums mentioned in the webinar of 10 year term with 4% interest.
- If you utilize the payroll tax deferral program, you may not be able to utilize the Paycheck Protection Program loan and as such you need to weigh the pros and cons of each heavily.
- When calculating the 500 employee maximum, it appears that you use your average number of employees in each month.
- There does not appear to be a subsidy on Paycheck Protection Program loan where the government pays part of your payments.
As mentioned previously, we do not have an obligation to update on changes to interpretations but since we are sending this communication added some clarifications. There will be further information coming out but please do not rely up on any of this information to make decisions. Instead, speak to someone knowledgeable on your own situation so a plan specific to you may be arranged.
You can access the webinar recording here.
You can access the slides here.
We’ll continue to post about the CARES Act on jlkrosenberger.com. For additional information, call us at 949-860-9892 or click here to contact us.