The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by President Trump on March 27th, 2020. The measure is designed to provide economic relief to the entire country in response to the coronavirus epidemic and the partial shutdown of the economy and nation. We wanted to bring to your attention some provisions that could prove beneficial to physician practices that are trying to make it through this disruptive period:
- Loans Available – Economic Injury Disaster Loans are available for amounts up to $10,000. Furthermore, there will be loan forgiveness for eligible employers on federal small business loans for certain payroll, sick leave, family leave, and other expenses occurring between February 15 and June 6. Also, the Small Business Administration will pay the principal, interest, and associated fees owed on 7(a) loans, 504 loans, and microloans for a six-month period.
- Retirement Account Withdrawals – The 10% penalty for retirement account withdrawals up to $100,000 is waived for individuals who have been affected by the virus. This can include people who test positive or have a spouse who tests positive, or those who experience adverse financial effects resulting from being quarantined, laid-off, or having reduced work hours.
- Federal Student Loans – Borrowers will not be required to make a payment until September 30, with no accumulation of interest.
- Taxes – For Social Security Taxes, employers and self-employed individuals may defer payment of the employer share until December 31. Furthermore, individual tax filers making less than $75,000 will receive a one-time tax rebate of $1,200.
- Unemployment Benefits – weekly benefits for all unemployed workers will be increased by a set amount of $600 a week for up to four months. This applies to workers already in the unemployment system and eligible employees about to apply.
The preceding article is for informational purposes only and should not be used for financial or tax planning purposes. Please consult your financial or legal advisor regarding specifics of the CARES Act and any other applicable state or federal statutes.