Stimulus/Corona Virus Act - help for small business

[Julie Jordan]

Thought I'd throw this out there, I know a lot of us have small businesses who have been affected by the shutdowns this virus has caused.

There are some provisions in the new law that will help small businesses survive. The first is fully-guaranteed loans from the SBA, no collateral or down payments required, that can be used to pay rent/mortgage, utilities, payroll, etc. Under certain scenarios it is possible that you would not have to repay and claim as income. Here is the link to the SBA site: https://www.sba.gov/page/coronavirus...loan-resources

Also, you can make withdrawals from your IRA and pay no tax if paid back within 3 years. If not paid back, the tax is payable over 3 years. The under-59 1/2 early withdrawal penalty has been waived.

You do not have to take a 2020 Required Minimum Distribution from your IRA, if you want. Our IRA's have taken a hit lately, this allows you to leave the funds in and (hopefully) watch the account recover.

[jmcarter]

Great tips Julie. I’d urge those thinking about pursuing this with he Small Business Association to not hesitate to file. Once the money is gone, it’s gone.

[Terry Cain]

Anyway to get around the IRMMA penalty?

[GUMP]

Thanks!

[House of Darts]

There is a real **** storm, once you go from the bill to actual forms and info needed. This is where government is at its weakest. Website can't mantain the influx. People sign up without the info needed and their application sits and blocks up everything. If you have a good relationship with a local bank, this is where you want to go. Its like dealing with the IRS or police force without an attorney strapped to your side. There's many financial forms/info required to complete. Do it right the first time or its a quagmire, gigitty!

[Julie Jordan]

Originally Posted by Terry Cain

Anyway to get around the IRMMA penalty?

Haven’t found anything that will help there. Maybe it will be in a later technical correction?

[Rich Biebel]

“You do not have to take a 2020 Required Minimum Distribution from your IRA, if you want. Our IRA's have taken a hit lately, this allows you to leave the funds in and (hopefully) watch the account recover.”

Thankyou for that info Julie.
For me that is helpful.
The IRS also lifted the age limit on IRA contributions starting 2020 I believe and those two things really helps if you’re working and well past the usual retirement age as I am.

You save it but end up giving some of it back in taxes.

[Julie Jordan]

Originally Posted by Rich Biebel

“You do not have to take a 2020 Required Minimum Distribution from your IRA, if you want. Our IRA's have taken a hit lately, this allows you to leave the funds in and (hopefully) watch the account recover.”

Thankyou for that info Julie.
For me that is helpful.
The IRS also lifted the age limit on IRA contributions starting 2020 I believe and those two things really helps if you’re working and well past the usual retirement age as I am.

You save it but end up giving some of it back in taxes.

Yes, the date is now 72. If you were already stuck with the 70 1/2 rule, then you have to stay with that.

[GrapeApe7575]

Our business(trucking and warehousing) has been hit so hard with all of the furniture retailers closing that this legislation may be the difference between survival and complete shutdown.

As I understand it, we are able to borrow 4 months(Feb 15 to June 30)of the average of the previous 12 months monthly payroll. If we use all of the borrowed money to pay payroll throughout that same period the load proceeds will be forgiven. If in fact we actually received these funds I plan to use it just to keep the doors open and not lose any of my staff. If the shutdown lasts into the summer it will bring a brand new challenge.

On the other hand.....I do not understand the need to give $1200 to each and every human in the country(including illegals if Pelosi gets her way). There are folks who have not and will not lose their job yet they still get the payout. Somebody help me understand how this is good business. You know that ultimately this all will come right back out of our pockets in the form of higher taxes and higher prices for goods and services.

We may all recover from the virus and its effects on our bodies....but we will never COMPLETELY recover from the economic effects of this event.

[Dan Fahey]

Originally Posted by GrapeApe7575

Our business(trucking and warehousing) has been hit so hard with all of the furniture retailers closing that this legislation may be the difference between survival and complete shutdown.

As I understand it, we are able to borrow 4 months(Feb 15 to June 30)of the average of the previous 12 months monthly payroll. If we use all of the borrowed money to pay payroll throughout that same period the load proceeds will be forgiven. If in fact we actually received these funds I plan to use it just to keep the doors open and not lose any of my staff. If the shutdown lasts into the summer it will bring a brand new challenge.

On the other hand.....I do not understand the need to give $1200 to each and every human in the country(including illegals if Pelosi gets her way). There are folks who have not and will not lose their job yet they still get the payout. Somebody help me understand how this is good business. You know that ultimately this all will come right back out of our pockets in the form of higher taxes and higher prices for goods and services.

We may all recover from the virus and its effects on our bodies....but we will never COMPLETELY recover from the economic effects of this event.

I understand full well why $1200 to each person.
All that money filters through our economy
Every penny...especially to poor and low wage workers.

Not the $trillions giving to corporations?
Especially the corporate give away money without Review and Feedback.
A lot of their money will never move through our economy!
Just more Trickle Down ** economics?

But we who have small businesses.
Have to go through a gauntlet of review and business records to apply.

But you worry about poor people getting $1200
More poor people bashing..

Yet ignore the huge corporations that do not give a crap about us.
Like all the CEO’s of major corporations that quit their cushy jobs so they could sell their Stock.
It is quite a list..

$trillions will go to Non-US corporations that never paid a dime in Taxes are getting Bail ..right Mitch McConnell?

But let’s worry about a poor person getting money.