Authors: Attorney John C. Mitby
On March 27, 2020, the President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide relief to individuals, businesses and hospitals in response to the economic distress caused by the coronavirus (COVID-19) pandemic. You should review and fill out the forms and see if you, your tenant, your business, or a business you are working with or have contract with qualifies (one should fill out the form in that it may help pay rent or other bills). There is no down side in doing so.
You should work with your Bank and accountant as they may be already working on it. Once you fill out the forms, SBA will tell you if you qualify. There are some types of businesses that may not qualify but there may be a second round of funding given the developing nature of all matters relating to COVID-19. Also check on pay back protection program. That may better fit your situation. That could be a better program if one qualifies. Again, talk with your accountant and Banker.
If you need to know the name of an accountant to help or ask questions please let me know; but there is no reason not to work with your own accountant and or Bank if they understand the programs and can help you. Plus, you can always read the attachments and contact SBA.
I also want to remind folks to fill out business interruption claim. One state has waived the right for insurance companies to contest such claims. Congress may fund the insurance company payments since the insurance companies, depending on the policy language, may take the position of “no coverage” since no physical loss occurred. Talk with your insurance agent.
The sooner the better since once the government runs out of funding there is always an issue. Plus, the number of applications will be overwhelming.