Important CARES Act Update from Hoberman & Lesser

Posted on March 30th, by Hoberman & Lesser in Firm News & Events, Timely Articles.

We understand the challenges that individual and business taxpayers are facing related to COVID-19. Since Hoberman & Lesser CPAs, LLP is an “essential business,” we are open and available to assist you. Approximately 25% of our staff are working remotely, and the rest of our staff are in the office. We are practicing social distancing protocols and other steps to minimize our physical interaction, including only one professional per office.

As you know, the Coronavirus Aid, Relief, and Economic Security Act, the “CARES Act,” was signed into law on Friday, March 27, 2020. The Small Business Association, “SBA,” has not disclosed the process to apply for the loans authorized by the CARES Act, and Congress is allowing the SBA two weeks to provide details.

At Hoberman & Lesser, we are closely monitoring the program, its rules, and the most effective methods to implement it for our clients. Since this Act was passed very quickly, the SBA did not have ample time to prepare for this massive program beforehand.

We understand that the $10,000 grant is one part of the Act; however, I suggest that you hold-off on this for at least a few more days. You need to be careful that you are NOT accidentally applying for a loan under the Economic Injury Disaster Loan (“EIDL”) program and that you are applying for a Payroll Protection Program (“PPP”) loan under the CARES Act. They are different, have different terms, and only the PPP loan has the conversion of the loan to a grant provision. It is possible to apply for the EIDL and the PPP program, but please speak with us about that possibility before you complete and submit any forms.

In addition, please call your bank and ask them if they are an SBA lender. If they are, ask who you should interface with to start the process as soon as the protocols are released. If they are not, we will guide you through the process. In any event, please contact us, and we will assist you in completing the forms.

Contact Us with Any Questions

Our Partners and staff members are closely monitoring tax-related legislation and regulations. We will continue to update you by sending communications about relevant news and changing guidelines. If you have any questions, please contact your Hoberman & Lesser advisor.