CLIENT ALERT –

** CARES Act **

Loan Relief and Strategic Opportunities for Small and Medium-Sized Businesses

KEY FEATURES:

Payroll Protection Program (PPP) – Section 1102

• Businesses with 500 employees or less (unless the covered industry’s SBA size standard allows more than 500 employees), including sole-proprietors, independent contractors, eligible self-employed persons and 501(c)(3) nonprofits.

• Loan amounts up to $10 million through December 31, 2020.

• Allows complete deferment of 7(a) loan payments for not more than one year and requires SBA to disseminate guidance to lenders on this deferment process within 30 days.

• Covers employees making up to $100,000 per year; loans taken for these purposes are forgiven if the business does not lay off its employees (forgiveness is scaled down as layoffs rise).

• Covered period for payroll February 15, 2020 – June 30, 2020.

• No fees collected from lender or borrower, forgoes the “can’t get credit elsewhere requirement.”

• No collateral, no personal guarantee required.

• Maximum loan maturity of 10 years from the date on which the borrower applies for the loan.

• Interest rate cannot exceed 4%.

• Lender must provide complete payment deferment relief for impacted borrower.

• Can be used for:

• • Payroll costs, continuation of group health care benefits during of periods of paid sick leave, medical and family leave and insurance premiums.
•  
  • Employee salaries, commissions, tips and similar compensation.
•  
  • Mortgage payments, rent, utilities, interest on any debt obligations that were incurred before the covered period.

Changes to Economic Injury Disaster Loans (EIDL) – Section 1110

• Economic Injury Disaster Loans (EIDL) are now available for virtually all businesses with fewer than 500 employees, and notably, sole proprietors, independent contractors and self-employed individuals, during the covered period (January 31, 2020 to December 31, 2020). Private non-profits are also eligible for both grants and EIDLs.

• For any SBA EIDL loans made in response to COVID-19 before December 31, 2020, the SBA shall waive any personal guarantee on advances and loans below $200,000, the requirement that an applicant needs to have been in business for the 1-year period before the disaster, and the “credit elsewhere” requirement.

• During the covered period, allows SBA to approve and offer EIDL loans based solely on an applicant’s credit score, or use an alternative appropriate alternative method for determining applicant’s ability to repay.

• Establishes an Emergency Grant to allow an eligible entity who has applied for an EIDL loan due to COVID-19 to request an advance on that loan, of not more than $10,000, which the SBA must distribute within 3 days.

• Requires that an advance payment be considered when determining loan forgiveness, if the applicant transfers into a loan made under SBA’s Paycheck Protection Program.

If you have questions about this Client Alert, please contact one of our attorneys for additional information or to schedule a consultation.

Vital Actions You Must Take to Protect Your Wealth and Safeguard Your Family’s Financial Future During this Global Pandemic

The raging global pandemic is placing a serious strain on our Nation’s health and financial systems as those systems try to cope with the myriad fear-driven reactions of an insecure public.

In the current environment, we encourage our clients to calmly consider, but aggressively undertake, the following Action Steps to update and improve their personal estate and asset preservation plans:

1) Review and revise your Will and other testamentary documents (lifetime trusts, powers of attorney, etc.), including the appointment of successor trustees and attorneys-in-fact.

2) Check the provisions of your living will/health care proxy to ensure that your instructions for the providing (or withholding) of life sustaining measures are appropriate and legally enforceable.

3) Consider and update your appointment of “stand-by” and testamentary guardians for your minor children, who will need the personal and financial guidance that you would want them to have in your absence.

4) Verify and, if needed, change the title (individual, joint, or “in trust for”) and signatory rights of designees with respect to bank accounts, certificates of deposit, lines of credit and similar financial accounts. Check and update your designees’ access to bank safe deposit boxes upon death or disability.

5) Verify the ownership and beneficiary designations for your life insurance, and consider the advisability of making changes for estate and wealth preservation purposes.

6) Check the tax and beneficiary status of your various retirement accounts, and evaluate the potential effect of the restrictions now imposed by the new “SECURE” Act on planning for inherited IRAs and other retirement assets.

7) Review how your home and other assets are held in the event that qualification for Medicaid assistance is deemed necessary in the future.

8) Explore available income tax planning strategies (including those made possible under the 2017 Tax Cuts and Jobs Act).

9) Consider and implement appropriate estate and trust planning techniques, including appropriate asset protection strategies for these uncertain times, that will achieve tax and non-tax objectives for preserving assets for your spouse, children and future generations.

10) Create a financial “family mission statement” that would properly coordinate with your estate and wealth preservation plans, setting out your desires, hopes, directions and expectations for your loved ones.

To implement any or all of these Action Steps you should contact us by phone or email, and we will respond promptly to guide you in moving ahead on these and other very timely (and time-sensitive) concerns. Our experienced lawyers and tax professionals are ready to assist you with identifying and mapping out the proper steps that you need to take, and putting them into effect before a life-changing event should occur.

White Paper Draft CDS 7 Mar 20

DWS Press Release-Final

No. 1 in an email series…

Seasoned Professionals Protecting Your Wealth and the Income You Work For

Dynamic Wealth Strategies, LLC, with its experienced lawyers and tax professionals, has developed targeted 2019 year-end income and transfer tax strategies for the recovery of otherwise “lost” benefits of residential property owners’ state and local tax (“SALT”) deductions.

• We offer our clients the ability to reclaim part or all of the now limited Schedule A state and local property and income tax deduction (the “SALT” deduction) for properties paid on personal residences (including, second homes and vacation homes), by utilizing traditional income tax and estate planning techniques that have been long recognized by the IRS, and wealth preservation structures that have been used successfully for decades. The recovered deductions under our strategies are typically valued at as much as $20,000, $30,000, $40,000, or more, annually.

• For business owners using pass-through entities (sole proprietorship, LLCs, partnerships and S-Corporations), we employ structured solutions that enable them to maximize the benefits of the 20% deduction against qualified business taxable income under new Section 199A.

• Our initiatives also help taxpayers who no longer file Schedule A to nevertheless utilize and maximize the unlimited deduction for charitable contributions; and

Dynamic Wealth Strategies offers professional legal and tax services to qualified clients across the United States, focusing on cutting-edge income tax and estate planning, flexible wealth preservation designs, and customized legal and tax advice for business owners, investors, and entrepreneurs. Our main offices are located in New York City and Greenwich, Connecticut.

We encourage you to contact us now in order to reclaim the value of your SALT deductions that Congress has taken away. The planning changes we can help you put in place today will continue to provide real tax savings – extending years into the future. We ensure that our fees are reasonable and cost effective in light of the considerable tax savings and benefits we achieve for our clients.

Don’t leave money on the table for the IRS – Seize the initiative and take it back!

Call me at 212-332-8550

or email me at cwtanzi@dynamicwealthstrategiesllc.com

Regards,

C. William Tanzi, Esq.

Dynamic Wealth Strategies, LLC