Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)

March 31, 2020

Authors:
Attorney John C. Mitby

Phone:
608-257-0945

On March 27, 2020, the President
Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act
(“CARES Act”) to provide relief to individuals, businesses and hospitals in
response to the economic distress caused by the coronavirus (COVID-19) pandemic.
You should review and fill out the forms and see if you, your tenant, your
business, or a business you are working with or have contract with qualifies
(one should fill out the form in that it may help pay rent or other bills).
There is no down side in doing so.

You should work with your
Bank and accountant as they may be already working on it. Once you fill out the
forms, SBA will tell you if you qualify. There are some types of businesses
that may not qualify but there may be a second round of funding given the
developing nature of all matters relating to COVID-19. Also check on pay back
protection program. That may better fit your situation. That could be a better
program if one qualifies. Again, talk with your accountant and Banker.

If you need to know the
name of an accountant to help or ask questions please let me know; but there is
no reason not to work with your own accountant and or Bank if they understand
the programs and can help you. Plus, you can always read the attachments and
contact SBA.

I also want to remind
folks to fill out business interruption claim. One state has waived the right
for insurance companies to contest such claims. Congress may fund the insurance
company payments since the insurance companies, depending on the policy
language, may take the position of “no coverage” since no physical loss
occurred. Talk with your insurance agent.

The sooner the better since once the government runs out of funding there is always an issue. Plus, the number of applications will be overwhelming.