Recently, Petra Coach hosted a Webinar, “Demystifying the CARES Act: What It Means & Where It’s Going” featuring David Waddell and Teresa Bailey of Waddell and Associates.

The content is invaluable to leaders during this unprecedented time.

You can find the full recording below.

If you’re looking for a more personalized session on the CARES Act and what your specific business needs to be doing, check out our workshops.

Other Resources:

The slides used in the presentation are also downloadable HERE.

For the general summary of need-to-know info, click HERE.

For the CARES vs. SBA comparison graphic, click HERE.


To augment the recording, we captured the Q&A from this session.

 Q: If your income exceeds phaseout can you get the money for your child?

  • Yes, and it will be reduced at some level
  • Teresa has a chart that breaks it down

Q: Does resident definition include OPT students and green card owners?

  • All aliens (Green card or sustainable presence test)

Q: Would you get a $1200 if you didn’t file a return in ’18 or ’19?

  • Yes, I have seen that you can – but I am not sure how to file for it

Q: Does anyone that files get $600?

  • $600 on top of the benefit they would normally qualify for
  • You would receive the benefit for 4 months

Q: Pandemic UE employees to straight commission EE’s?

  • They have expanded to cover independently contractors
  • Will be covered and receive the additional

Q: For early IRA withdraws, can this be used and not repaid?

  • You can repay and deposit over time
  • You have a 3-year window

Q: Do you think it is a couple of weeks before they get cash or application?

  • It will take a couple of weeks for the application
  • Set your expectations that this is not going to be quick money
  • Application must be submitted by June 30th

Q: Advice on the Paycheck Protection Loan

  • Must be used for working capital to carry out business
  • Track the expenses in detail à
  • You will have to submit them for your forgiveness

Q: Are healthcare and benefits excluded for > $100K employees?

  • Doesn’t matter how you get to $100K it is capped at $100K

Q: Can you apply for EIDL and PPP?

  • Yes, and there is a way to have your EIDL refinanced à The details are pretty interesting
  • Mechanics have not been clarified
  • Banks need to work on the underwriting

Q: If you are a business owner and the only employee, can you use PPP?

  • Yes

Q: If you get denied for PPP, can you get tax referral?

  • Yes

Q: Do furlough employees count towards reduction?

  • Yes, they must be brought back (not necessarily prior to, you can catch up – they made a provision for that)

Q: Does this mean that hiring is beneficial in loan forgiveness?

  • Once you reach your average you will not be forgiven more than the total loan amount

Q: What about new hires in 2020?

  • You are looking at # of FTEs
  • It will be weighted throughout the past year

Q: Our company’s internal workforce is W2 and sales force is 10-99 – Where does 10-99 fall into?

  • This is only for W2’s
  • Independent contractors do not count

Q: What about rent, utilities and payroll calculation?

  • You will get a check and you can apply it to those things that are qualified as “acceptable uses”
  • You may borrow more than you are forgiven

Q: Is owner compensation included? Guaranteed payments included?

  • Can’t speak to yet

 Q: If we increase # of employees we have from this time last year, can we also reimburse their compensation?

  • Yes
  • The greater the retention ratio the greater your loan forgiveness

Q: How is “need” defined? If we have an untouched LOC that is greater than the PP loan max, would we not qualify?

  • They will not look at availability as the qualifier
  • Underwriting is going to be super relaxed or else they couldn’t process it all

Q: Does PPP consider profitability?

  • No, it is revenue base

Q: Can 10-99 file for unemployment or benefits?

  • Unemployment – yes
  • FMLA – unsure

 Q: Can the forgiveness be greater than the loan you took?

  • No

Q: What if I have part time employees?

  • Applies to FTE and equivalent, not part time

Q: Does the PPP apply to companies with 300 employees?

  • Yes – 500 is the max
  • If you have multiple locations, like a restaurant chain, it cannot be more than 500 per site.

Q: PPP vs. Credit?

  • PPP = Protect Numbers
  • Credit = Survival Mode

Q: What defines FTE?

  • Based on a 40-hour work week

Q: PPP Funds needs to be used in a set timeframe?

  • 8 weeks

Q: Is every company with 500 employees or less eligible or just companies deemed small biz by SBA?

  • There are some exceptions, but they still have to comply with SBA rules

Q: Is forgiveness for only 8 weeks?

  • From the date the loan is issued – 8 weeks after

Q: Do we need to provide audit financial or just tax return?

  • I’d get it all ready

Q: What if the earn over $100K, can they be capped at $100K for the forgiveness or are they disqualified from the forgiveness?

  • They are not disqualified – just capped

Q: If we furlough someone today, does it count towards PPP calculation as long as I bring them back when PPP kicks in? à When do I strike my payroll rate?

  • Everything is February time frame
  • It will be redefined when the rules come out

Q: I am a sole proprietor if an LLC and have cut my pay to $0, and I have employees – Can I collect?

  • No

Q: For PPP, what is 2020-year review? Jan & Feb or does it include March?

  • Feb 15 – June 30th
  • January to End of Feb

Q: We are seasonal and did not bring anyone on for spring

  • There is a mechanism for seasonal employees and is addressed
  • It is complex, but it is covered

Q: If I have 4 employees each making more than $100K then my cap for each of those employees $100K totaling 400K?

  • Yes

Q: The 8-week period for which PPP will be forgivable must take place before 6/30?

  • You have to apply by 6/30 – not finish your 8 weeks by then

If you’re looking for more personalized and specific CARES Act assistance, attend our workshop.

Cares Act workshop for business leaders

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