{"id":470,"date":"2020-03-31T18:37:05","date_gmt":"2020-03-31T18:37:05","guid":{"rendered":"https:\/\/franchiseindustryblog.com\/?p=470"},"modified":"2022-06-28T22:08:31","modified_gmt":"2022-06-28T22:08:31","slug":"coronavirus-franchise-sba-stimulus-program","status":"publish","type":"post","link":"https:\/\/www.franchiseindustryblog.com\/coronavirus-franchise-sba-stimulus-program\/","title":{"rendered":"Coronavirus Franchise SBA Stimulus Program"},"content":{"rendered":"

Coronavirus Franchise SBA Stimulus Program<\/span><\/h2>\n

The entire world has been affected by the Coronavirus Pandemic, the franchise industry is certainly part of this sweeping downturn initiated by the virus.\u00a0 As franchised small businesses, the timing of this stimulus program and the terms are positioned well to help us as franchise industry owners get through this terrible situation and emerge with new life in the second half of 2020.\u00a0 Use the resources and leverage our government’s support to help your franchised business or franchisor entity get through Coronavirus.\u00a0\u00a0<\/span><\/p>\n

CARES Act Summary<\/span><\/p>\n

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a roughly $2 trillion bill intended to provide emergency assistance and healthcare response for individuals, families, and businesses affected by the COVID-19 pandemic.\u00a0 The measure provides direct financial aid to American families, payroll and operating expense support for small businesses, and loan assistance for distressed industries.<\/span><\/p>\n

Top Takeaways for Restaurants, their owners, and employees:<\/b><\/span><\/p>\n

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  1. Provides stimulus to individuals and businesses in response to the economic distress caused by the coronavirus (COVID-19) pandemic.<\/span><\/li>\n
  2. The Paycheck Protection Act creates a $349 billion loan program for small businesses, and expands the definition of such businesses for the purposes of these loans.\u00a0 Paycheck Protection Program loans can be forgiven through a process that incentivizes companies to retain employees and their compensation.\u00a0 Special consideration given to restaurants and accommodations.<\/span><\/li>\n
  3. Penalty-Free Coronavirus-Related Distributions from Eligible Retirement Plans.\u00a0 The CARES Act permits employers and plan sponsors to allow participants in eligible retirement plans to receive Coronavirus-Related Distributions (CRDs) up to $100,000 without incurring the 10 percent early distribution penalty tax that would otherwise generally apply to payments made prior to age 59 \u00bd.\u00a0<\/span><\/li>\n
  4. Provides direct payments \u00a0in the form of a refundable tax credit to American taxpayers — $1,200 to Americans making $75,000 or less ($150,000 in the case of joint returns and $112,500 for head of household) and $500 for each child, to be paid \u201cas rapidly as possible.\u201d\u00a0 An online calculator for the amount one can expect to receive can be found here https:\/\/www.washingtonpost.com\/graphics\/business\/coronavirus-stimulus-check-calculator\/<\/span><\/a><\/span><\/li>\n
  5. Expands eligibility for unemployment insurance and provides people with an additional $600 per week, in addition to the amount determined by each state.<\/span><\/li>\n
  6. Provides tax relief to business and individuals, both deferments of deadlines and waivers of certain taxes.<\/span><\/li>\n
  7. Expands telehealth services in Medicare, including services unrelated to COVID-19 treatments.<\/span><\/li>\n
  8. Provides the Secretary of the Treasury with the authority to make loans or loan guarantees to states, municipalities, and eligible businesses and loosens a variety of regulations prior legislation imposed through the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Economic Stabilization Act of 2008, and others.<\/span><\/li>\n<\/ol>\n

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    Tax Implications of CARES<\/b><\/span><\/p>\n

    Net Operating Loss (NOL) Rule Relaxation –<\/b><\/span>Losses arising in 2018, 2019 and 2020 can be carried back to the five preceding years.<\/b><\/span><\/p>\n