View slides from our April 6 Webinar, what the CARES Act means for enterprises and their independent workers.

1. © 2020, MBO Partners, Inc.
MARCH 2020

2. © 2020, MBO Partners, Inc.
Bryan Peña
Chief of Market Strategy

3. © 2020, MBO Partners, Inc.
Using the Webinar Features
• All attendees are muted and video is turned off
• We will facilitate as many questions as we are able during
the meeting using the Q&A feature at the end
• Please visit CARESforIndependents.com after this webinar
to sign up for more information as it becomes available, and
to view the live video that will be posted after the webinar.
You can also find a recording on Facebook Live.
PARTICIPATING IN TODAY’S WEBINAR

4. © 2020, MBO Partners, Inc.
Disclaimer
The information provided here does not constitute legal, tax or financial advice.
It does not take into account your particular circumstances, objectives, legal
and financial situation or needs. Before acting on any information, you should
consider the appropriateness of the information for your situation in consultation
with a professional advisor of your choosing. This is a rapidly changing area of
the law and will be subject to change and interpretation.

5. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
At MBO Partners, our mission is to make it easier
for enterprise organizations and top independent
professionals to work together.
For more than 20 years, we’ve been leading the
charge to keep the independent economy moving
forward, building a unique, dual-sided ecosystem
comprising many of the world’s most prominent
companies and in-demand professionals.
MBO has always been committed to advancing the
next way of working, and we are far from done.
We’ll continue to drive change on the ground,
delivering innovative solutions that enable both
organizations and talent to thrive in a constantly
evolving workplace.

6. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
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CARESforIndependents.com

7. © 2020, MBO Partners, Inc.
Miles Everson
CEO

8. © 2020, MBO Partners, Inc.
In the face of uncertainty,
fear often sets in.
MBO helps enterprises
and independent workers
face everything—
and rise up.

9. © 2020, MBO Partners, Inc.
OUR PURPOSE

10. © 2020, MBO Partners, Inc.
COVID-19 Impact on Independents and
Employees Alike
10
• One in five American workers say they will be unable to
meet basic financial needs in one week or less
• 38% of knowledge workers will be unable to meet basic
needs after one month or less
• 64% of consumers have stopped purchasing a brand
after hearing news of that company’s poor employee
treatment
Source: Society for Human Resource Management (SHRM),
“COVID-19 Research: Implications for the American Workforce”
Careerarc,, Employment Branding Study 2017

11. © 2020, MBO Partners, Inc.
Setting the Stage for COVID-19 Relief
via the CARES Act and MBO Partners

12. © 2020, MBO Partners, Inc.
Gene Zaino
Founder &
Executive Chairman

13. © 2020, MBO Partners, Inc.
Economic Contribution
13
Over the past year, independent workers generated roughly $1.28 trillion of
revenue for the U.S. economy, equal to about 6.2 percent of U.S. GDP (2018), or
the entire economic output of Spain.

14. © 2020, MBO Partners, Inc.
41.1 million
total independents in America
Some 47.8 percent of U.S. adults report either
currently working or having worked as an
independent at one time during their careers.
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15. © 2020, MBO Partners, Inc.
Meet the Independents
15

16. © 2020, MBO Partners, Inc.
Coronavirus Aid, Relief, and Economic
Security Act (CARES)
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A $2 trillion relief package for US citizens
and businesses affected by the COVID-19
pandemic and the resulting economic
impact of mandatory closures, social
distancing orders, supply chain disruptions,
unemployment, and reduced consumer
demand.

17. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
Key CARES Act Benefits:
Small Businesses and
Independent Contractors
 Deferring employer side of SS tax
 Refunds for NOLs carried back
 Cash grants for immediate assistance
 Payroll loans with potential forgiveness

18. © 2020, MBO Partners, Inc.
Self-Employment Taxes or Employer-Side
Social Security Payment Deferred
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• Employers and self-employed individuals may defer
payment of the employer share of the Social Security tax.
• Employers are generally responsible for paying a 6.2
percent Social Security tax on employee wages, matching
what the employees pay.
• Self-employed workers pay both sides as they are
their own employer and can defer 50% attributable to
SS tax.
• Repayment is required over two years,
half by 12/31/2021 and the other half by 12/31/2022.
SECTION 2302. DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES
CORPORATIONS MAY DEFER THE
EMPLOYER SIDE OF SOCIAL
SECURITY.
SOLE PROPRIETORS AND PASS-
THROUGH ENTITIES MAY DEFER
HALF OF SELF-EMPLOYMENT
TAX.

19. © 2020, MBO Partners, Inc.
Net Operations Loss (Carrybacks) for
Income Tax Refunds and Tax Reductions
19
• The provision relaxes the limitations on a company’s use of
losses.
• Net operating losses (NOL) are no longer subject to a taxable
income limitation and can now be carried back to reduce
income in a prior tax year.
• The provision provides that an NOL arising in a tax year
beginning in 2018, 2019, or 2020 can be carried back five
years.
• Check with your tax professional to see if this can help you.
SECTION 2303 AND 2304. MODIFICATIONS FOR NET OPERATING LOSSES
ALLOWS BUSINESSES,
INCLUDING PASS-THROUGH
ENTITIES AND SOLE
PROPRIETORS, TO UTILIZE
LOSSES AND AMEND PRIOR YEAR
RETURNS FOR ADDITIONAL CASH
FLOW.

20. © 2020, MBO Partners, Inc.
Low-Interest Loans and Immediate Grants
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• Expands eligibility for Economic Injury Disaster Loans (EIDL)
for any individual operating as a sole proprietor or an
independent contractor during the covered period (January
31, 2020 to December 31, 2020).
• Administered directly by the SBA for payroll related as well as
other operating expenses.
• Loans based solely on an applicant’s credit score
• SBA must verify that the entity is an eligible applicant for an
EIDL loan. This approval shall take the form of a certification
under penalty of perjury by the applicant that they are
eligible.
SECTION 1110. EMERGENCY EIDL GRANTS
WWW.COVID19RELIEF.SBA.GOV
$10,000 AVAILABLE VIA
EMERGENCY GRANT WHICH THE
SBA MUST DISTRIBUTE WITHIN
3 DAYS.
THE APPLICANT DOES NOT HAVE
TO REPAY.

21. © 2020, MBO Partners, Inc.
Low-Interest Payroll and Overhead Loans
Potentially Forgiven
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• Government guaranteed loan, administered by lenders (banks) -
available for independents.
• Borrowers must sign a certification of necessity to obtain
• Proceeds must be used for payroll and overhead-related costs
• The loan amount is calculated at 2.5 times the company’s
average monthly payroll costs.
• Loan forgiveness is equal to the amount spent by the borrower
during an eight-week period after the origination date of the loan.
• Amounts forgiven will be reduced proportionally if payroll is
reduced during this period
• EIDL grants must be deducted from total amounts forgiven
SECTION 1102; 1106. PAYCHECK PROTECTION PROGRAM LOANS AT 4 PERCENT INTEREST
CAN TAKE A POTENTIALLY
FORGIVABLE LOAN FOR
EIGHT WEEKS OF
QUALIFIED PAYROLL AND
OVERHEAD.

22. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
Key CARES Act Benefits:
Individuals
 Expanded Unemployment assistance
 Direct cash to your bank account
 Retirement account withdrawals
 Tax day extended to July 15

23. © 2020, MBO Partners, Inc.
Expanded Unemployment Benefits Now
Include Independents
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• Pandemic Unemployment Assistance adds self-employed and gig
workers who were previously unable to claim unemployment benefits.
• Claim unemployment immediately without a waiting period, subject
to state provisions.
• Emergency increase in unemployment compensation benefits,
providing an additional $600 per week payment for up to four months.
Paid on top of the standard state unemployment program.
• Funding for short-term compensation and partial work reduction.
This is for people who have had their work reduced; they are entitled to
receive a pro-rated unemployment benefit.
SECTIONS 3603. 2102.2104.2105.2107.2108. ADMINISTERED BY EACH STATE
To apply, go to your state’s website for unemployment.
$600 PER WEEK IN
ADDITIONAL
UNEMPLOYMENT BENEFITS
IN ADDITION TO STATE
COMPENSATION

24. © 2020, MBO Partners, Inc.
Direct Cash to Your Bank Account
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• All individuals with an adjusted gross income (AGI) of $75,000 or
less ($112,500 for head of household filers, and $150,000 for
married filing jointly) will receive recovery checks of $1,200.
Increase by $500 for every child under 17 years of age.
• These amounts phase out on a pro-rata based as follows:
• $99,000 for individuals, $146,000 for head of household
filers, and $198,000 for joint filers
• Based on AGI of 2019 tax returns if filed, and if that tax return
was not filed, on the 2018 return
• If you have both W-2 income and pass through income, it all
ends up on the AGI line of the 1040 return
SECTION 2201. 2020 RECOVERY REBATES FOR INDIVIDUALS
$1,200 PER INDIVIDUAL
AND $500 PER CHILD

25. © 2020, MBO Partners, Inc.
Relaxed Rules on Early Withdrawal of
Retirement Account Funds
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• Withdraw up to $100,000 from qualified retirement
accounts, like IRAs and 401(k)s without penalty if you, a
spouse or a dependent are diagnosed with COVID-19, or if you
experience adverse financial consequences as a result of the
pandemic.
• Subject to tax over three years or must be paid back to the
account within three years without regard to that year’s
cap on contributions.
• Or, take a loan up to $100,000 (increase from the standard
$50,000) with repayment as far out as six years. Also, existing
employer required loan repayments have been suspended for
up to one year.
SECTION 2202. SPECIAL RULES FOR USE OF RETIREMENT FUNDS
TAKE UP TO $100,000
FROM QUALIFIED
RETIREMENT ACCOUNTS AS
A WITHDRAWAL OR LOAN,
DEPENDING ON
CIRCUMSTANCES

26. © 2020, MBO Partners, Inc.
Federal Income Tax Filings Deadline
Extended to July 15
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• Tax deadlines for individuals and pass-through
entities like Sole Proprietorships have been
bumped back to July 15 from April 15. This
includes payment of quarterly taxes for the
first quarter. At present, second-quarter taxes
are still due on June 15.
• If you do elect to pay your taxes on time,
refunds are being expedited.

27. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
Why a modern business
model is needed to
respond to events like
COVID-19

28. © 2020, MBO Partners, Inc.
PROGRESS IS
DEFLATIONARY
FRACTIONALIZATIO
N OF EVERYTHING
RATE OF CHANGE
IS ACCELERATING
THE POWER OF
KNOWLEDGE
FLOWS
Four Forces Changing Our World
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ONLY
MODERN
BUSINESS
MODELS
WILL
THRIVE

29. © 2020, MBO Partners, Inc.
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Creating a Talent Pool
OPTION 2
Managers post opportunities to
talent from other clients in the
broader MBO network.
OPTION 1
Managers post opportunities to
qualified and vetted workers from its
pool of known talent, or they can
search profiles for matches.

30. © 2020, MBO Partners, Inc.
Building Pools of Known Talent
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CLIENT-SPECIFIC
COMMUNITY
TRUSTED TALENT
RETIRED
EMPLOYEES
CURRENT
INDEPENDENTS
ALUMNI
INDEPENDENTS
PREVIOUS
CANDIDATES
MANAGER
REFERRALS
SEO / SEM
LANDING PAGE
EXTERNAL
TALENT POOLS

31. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
What Enterprises Can
Be Doing Right Now!

32. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
Four Things You Should Do Now
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Help Independents Financially
Help Independents Find Work Direct Workers to MBO Transitions
Contact MBO to learn more
Build a Pool of Known Talent
Create A Modern & Resilient Workforce
Direct Workers to CARESforIndependents.com
Create Your Own Community on the
MBO Platform
Learn how
Have a Workforce Optimization Strategy
Contact MBO to learn more
Actions You Should Take How MBO Can Help

33. © 2020, MBO Partners, Inc.© 2020, MBO Partners, Inc.
Questions?

34. www.mbopartners.com
© 2020, MBO Partners, Inc.
CONTACT:
Bryan Peña, Chief of Market Strategy
703-793-6007
bpena@mbopartners.com