The US Senate introduced and passed the Coronavirus Aid, Recovery, and Economic Security (CARES) Act on March 25, 2020 and it is now pending House approval. While the CARES Act covers several areas, provisions relevant to HMA clients include several options (brief early summary provided by Mark Shub, Esq. and & Andrew Weissenberg, Esq. of Shub & Associates, P.C.) - This information should not to be construed as legal advice - See (www.shubassociates.com/).
Forgivable loans for small businesses would potentially cover payroll, leave, mortgage, and other related expenses (“Qualified Expenses”). The loans would only have to be repaid if funds are spent on activities other than Qualified Expenses, and the loans would convert to grants if used for Qualified Expenses.
Businesses would receive loan forgiveness in an amount equal to the Qualified Expenses for the covered period of March 1, 2020 to June 30, 2020. This would be conditional upon the business retaining their employees and payroll levels during the covered period.
The amount of the loan eligible for forgiveness will be reduced proportionally by the number of employees terminated during this period relative to the borrower’s prior employment levels.
Click on the link below and review Sections 1102 and 1105 that discuss the Loan Program and Loan Forgiveness.
HMA is closely monitoring this opportunity for our clients and will reach out to you as more information becomes available.