CARES ACT is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak. While that is great news, in and of itself, presentation covers some of the key provisions included in the bill and what that may mean for you

1. CARES Act 2020: Support to
Families and Businesses
Information in the presentation is based on guidelines available as of above date
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30th March 2020

2. 2
STIMULUS OVERVIEW
02 INDIVIDUALS & FAMILIES
03
01
04 CASE STUDIES – work in progress
SMALL BUSINESSES

3. 3
The CARES Act provides relief to several groups - Breakdown of $2
Trillion
Individuals &
Families
$560 billion
(estimated)
Public
health
$153.5
billion
State & local
governments
$339.8 billion
Big
corporations
$500 billion
Small
businesses
$377 billion
Education/other
$43.7 billion
(estimated)
Safety net
$26 billion
• Cash payments to qualified individuals and families -
$1200/$2400 + $500/child
• Penalty free withdrawal from retirement accounts up to
$100K
• SBA forgivable loans up to $10mn
• SBA emergency grant up to $10K
• Economic injury SBA disaster loan up to $2mn
• Defer payroll taxes sec 2201 to 2021/2022
• Get cash for NOLs in 2018,2019,2020
• Employee retention credit up to $10K/employee
• Sick employee payroll tax credit up to
$2K/employee/employer
Families First
Coronavirus Response
Act
NJ Mortgage Relief
HIGHLIGHTS

4. 4
Support to Individuals and Families (1/3)
KEY PROVISIONS
• The cash payments are based on either your
2018 or 2019 tax filings
• The IRS also says that people who have filed or
plan-to can still expect to receive a refund if they
are owed one.
UNEMPLOYMENT BENEFITS
State base amount per
week
CARES: +$600/week
AMOUNT: Increase in
Unemployment Benefit Amount
DURATION: Increase in
Unemployment Benefit Duration
CARES: +13 Weeks
State Duration
KEY PROVISIONS
• People nearing the maximum number of weeks
allowed by their state would get an extension
• New filers would also be allowed to collect the
benefits for the longer period
• Available to gig workers, self-employed and
freelancers until end of the year
2
$0K $50K $100K $150K $198K
$99K+ : No Payment
Up to $75K : Full Payment
$75K
Up to $150K : Full Payment
$198K+ : No Payment
Individuals
Couples
(filing jointly)
$99K
$1200
$2400
$500/child
2 * $1200 2 * $500+ = $3400
CASH PAYMENT
Example: Income less
than $150K
1
Phased out

5. 5
Support to Individuals and Families (2/3)
FAMILY & MEDICAL LEAVE
EMERGENCY WITHDRAWLS FROM RETIREMENT ACCOUNTS
3
4
• Unable to work due to a public health emergency.
• Not less than two-thirds of the employee’s regular pay, up to $200/day and $10,000
over the benefit period.
• Duration of leave: 12 weeks
• If you are sick, quarantined or caring for an individual, then you qualify for paid sick
leave as per FFCRA: DIVISION E—EMERGENCY PAID SICK LEAVE ACT
• No 10% penalty on early withdrawals of up to $100,000 by people affected by coronavirus
• Owe income tax on the withdrawal, taxed at ordinary income tax bracket; you can split it up equally
between 2020, 2021 and 2022
• Return cash to IRA from early withdrawal in the next three years to avoid owing the taxes pro-rata
• 401K borrowing limit has been raised from $50,000 to $100,000; however no loan against IRA account

6. 6
Support to Individuals and Families (3/3)
NJ MORTGAGE RELIEF5
• Mortgage-payment forbearances of up to 90 days; delay or reduction in monthly mortgage
payment
• About 40 FIs have committed to providing the relief, they will:
• Provide streamlined process for requesting forbearance
• Confirm approval of and terms of forbearance program;
• Provide you the opportunity to extend your forbearance agreement if you continue to
experience hardship due to COVID-19
• Relief from fees and charges for 90 days
• No new foreclosures for 60 days
• No credit score changes for accessing relief

7. 7
Support for Small Businesses (1/5)
SBA Loans1
Need capital to cover the cost of
retaining employees
A quick infusion of a smaller
amount of cash to cover you right
now?
To ease your fears about keeping
up with payments on your current
or potential SBA loan?
Paycheck Protection Program
Emergency Economic Injury
Disaster Loan/Grant
Small Business Debt Relief
Program

8. 8
Support for Small Businesses (2/5)
Purpose
Paycheck Protection Loan Program
SBA 7(a) Federal Small Business Relief
Economic Injury Disaster Loan Program
SBA 7(a) Federal Small Business Relief
Loan Forgiveness
Eligibility
• Primarily for payroll costs • Primarily for working capital and other costs
• Available • Not Available
• Small businesses with employees less
than 500
• Non-profits
• Self-employed
• Independent contractors
• Small businesses with employees less
than 500
• Sole proprietorships
Loan Terms • Term: 10 years, Interest: 4% max • Term: 30 years, Interest: 4% max
• Businesses: 3.75%, Non-profit: 2.75%
Approval/Payout • SBA approved lenders • SBA only

9. 9
Support for Small Businesses (3/5)
Paycheck Protection Loan Program
SBA 7(a) Federal Small Business Relief
Economic Injury Disaster Loan Program
SBA 7(a) Federal Small Business Relief
Deferment
Requirements
• Up to 1 year • Up to 1 year
• Minimum requirements, Less paperwork,
Fast processing
• In operation as of 15th February 2020
• Less than 500 employees
• Experienced financial hardship(loss of
sales/revenues)
• No Personal guarantee required
• Not available • $10,000 available within 3 days, no
condition on repayment
Emergency Grant
Loan Amount
• Stringent requirements, More Paperwork, Slow
Processing (except: Emergency $10,000 grant
available within 3 days)
• In existence for a year or more
• Less than 500 employees
• Show proof of financial hardship(loss of
sales/revenues)
• 3 years P/L statements and tax returns
• Personal guarantee required for loans above
$200K
• Lesser of
• The average of monthly payroll costs
of 2019
OR
• The average of monthly payroll costs
of Jan & Feb 2020
• 250% of the lowest average
• Determined by SBA
• Varies by Industry Size(NAICS)
• Up to $2mn

10. 10
Support for Small Businesses (4/5)
Paycheck Protection Loan Program
SBA 7(a) Federal Small Business Relief
Economic Injury Disaster Loan Program
SBA 7(a) Federal Small Business Relief
Loan Forgiveness • Spend money during first 8 weeks after
issuance on:
• Payroll costs (up to 100K per employee)
• Mortgage or rent on a property or
building
• Utilities
• Loan forgiveness not available
• $10,000 emergency grant to be deducted
from loan forgiveness in Section 7(a)
Paycheck Protection Loan
Example Calculations
Monthly Payroll $50,000
Vacation/Sick Leave $2,000
Health Insurance $4,000
Retirement Costs $1,000
Total $57,000
250% of Total
Loan Amount $142,500
Amount spent in 8 weeks
on above expenses $100,000
Forgivable loan amount $100,000
The Remaining $42,500 coverts to a 10-
year loan at a fixed interest rate of 0.5%

11. 11
Support for Small Businesses (4/5)
Tax Provisions2
• SEC. 2301. Employee Retention Credit for Employers Subject to Closure due to COVID-19
• SEC. 2302. Delay of Payment of Employer Payroll and SECA Tax Payments
• SEC. 2303. Modifications for Net Operating Losses
• SEC. 2304. Modification of Limitation on Losses for Taxpayers other than Corporations
• SEC. 2305. Modification of Credit for Prior Year Minimum Tax Liability of Corporations
• SEC. 2306. Modifications of Limitation on Business Interest
• SEC. 2307. Technical Correction of Bonus Depreciation for Qualified Improvement
Property

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SBA District Offices – New Jersey & New York
New Jersey District Office
Two Gateway Center Suite 1002
Newark, NJPhone: 973-645-2434
Fax: 973-645-6265
New York District Office
26 Federal Plaza Suite 3100
New York, NYPhone: 212-264-4354
Fax: 212-264-4963
Website : New York SBA District OfficeWebsite : New Jersey SBA District Office

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Case Studies – It is work in progress, and they
will be available on our COVID-19 Stimulus
portal along with other useful information. To get
access to portal, please email
sdamarapati@dbs-partners.com

14. 14
What Goals Can We Help You With?
Sharmila Damarapati, CPA
New Jersey
100 Overlook Center
Princeton, NJ 08540
Map Location
New York
300 Park Ave, 12th Floor (WeWork)
New York, NY 10022
Map Location
sdamarapati@dbs-partners.com
(551)-208-2608
Schedule an Appointment
Sharmila has expertized in Accounting, Taxes, External and Internal Audit,
Startups and Small Business CFO Services, M&A, Divestitures and Carve-outs,
SEC reporting, Accounting Policy and Technical Research, Sarbanes-Oxley, US
GAAP, IFRS and Audit Data Analytics.
Before founding DBS Partners, Sharmila worked at Deloitte & Touche LLP serving
clients in sectors such as mortgage banking, energy, real estate, investment
funds, private equity, consumer products, life sciences, and specialty chemicals.
Sharmila graduated Summa Cum Laude from Rutgers University with Bachelor’s
and Master’s degrees in accounting. She is currently licensed in New Jersey and
New York. She is a member of the American Institute of CPAs and the New
Jersey Society of CPAs.
www.dbs-partners.com