introduction cares act · 2020-05-20 · microsoft powerpoint - cares ppp slides dch_skl author:...

4/3/2020

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CARES Act(Phase III COVID-19 Response)

April 3, 2020

© 2019 ML STRATEGIES, LLC. // Confidential Property

• Unprecedented

• Relationship

• Structure Tone

community

• Preparation

Introduction

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• Anthony DeMaio – ML Strategies

• Jennifer Gray – KPMG

• Jeff Kissel – GISI

• James Donaghy – STO

• David Hamilton – STNY

Intro - Panelists

3 © 2019 ML STRATEGIES, LLC. // Confidential Property

• ST Financially• ST Projects• ST Offices• ST focus … workflow, cashflow

• ST & external orgs.

STO Resources

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4/3/2020

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• CARES Act

• $2.2 trillion stimulus bill

passed last week

• Resulting from COVID-19

SBA Loan


• Paycheck Protection Program

• <(500) Employees

• Retain / Rehire (8) Weeks

• $349 billion dedicated to the

Paycheck Protection Program

SBA Loan

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• Paycheck Protection loans are issued by banks, not the government.

–Applications TODAY – Friday, April 3rd

SBA Loan


• Application process…

–Loans for 2.5 times

monthly payroll (up to

$10m).

–Documentation of payroll,

rent/mortgage, and utilities


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• Banks–SBA authorized?

–PPP Participant?

–(100) most active

–Terms are same

–No application fee

– No personal guarantee / Pledge Collateral



Sample application www.sba.gov

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THE MONEY WILL RUN OUT –APPLY AS SOON AS POSSIBLE


• Loans are eligible for forgiveness, provided:–Funds are used for eligible expenses

including payroll, rent/mortgage, and utilities,

–Headcount is not significantly reduced, and

–Salaries are not significantly cut.


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• No payments will be due

for at least six months

• The loan is due in 2 years



• There is no pre-payment penalty.

• The interest rate is set at 0.5%.


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• Payroll taxes–2020 payroll taxes, from March 27 to

December 31 are deferred

oHalf are due at the end of 2021

oThe other half at the end of 2022

–Employee retention credit

–Emergency sick leave and Emergency FMLA credits

Tax Provisions


• Other tax matters–Business losses

–AMT credits (Alternative Minimum Tax)

–Deduction of business interest expense

–Additional flexibility for retirement

accounts

Tax Provisions

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4/3/2020

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Closing / Q&A / Follow up

April 3, 2020

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introduction cares act · 2020-05-20 · microsoft powerpoint - cares ppp slides dch_skl author:...

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