Cares Act / Stimulus Update

Greetings from the Bertz, Hess & Co.. team!
As we continue to navigate through uncharted waters, our team of tax and accounting professionals remains committed to keeping you informed with all of the latest and most relevant information. Today’s edition will primarily focus on a comparison of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Other current issues that we will be addressing include the status of unemployment applications in Pennsylvania for the self-employed, fraud guidance with respect to IRS Economic Impact Payments (stimulus checks), and a reminder on the ever-changing income tax due dates.

The CARES Act includes two loan programs that are intended to offer relief to qualifying small businesses and help keep them afloat during the COVID-19 pandemic and related closures. Assuming that your business qualifies for these programs, it is important to understand which loan best suits your needs. Below is a chart that serves as a high-level comparison of the two programs. If you have questions as to whether or not your business qualifies, please do not hesitate to reach out to us.
Maximum Amount: $2,000,000Maximum Amount: $10,000,000
Grant (No Repayment): Up to $10,000Forgivable Amount: 8 weeks of eligible Expenses
Interest Rate: 3.75% (2.75% for non-profits)Interest Rate: 1.0% (balance remaining after forgiveness)
Repayment Period: 10 Years (No prepayment penalty)Repayment Period: 2 Years (No prepayment penalty)
Payment Deferral Period: 1 yearPayment Deferral Period: 6 months
Personal Guarantee Required: Loans over $200,000Personal Guarantee Required: No
Collateral Required: Loans over $25,000Collateral Required: No
Please note that you can apply for both loans, and receive benefits from both programs; however, you can not apply the same benefit dollars to the same expenses. Further, the permitted uses for EIDL funds differ somewhat compared to PPP.

Unemployment for the Self-Employed

The CARES Act provides unemployment benefits to self-employed individuals and independent contractors, which is a significant change in Pennsylvania as it was not previously available for those types of taxpayers. Unfortunately, the current form on the state’s unemployment site is not meant for the self-employed and independent contractors. The PA Department of Labor is asking that these individuals do not submit applications at this time, and that they wait until the proper form is available. There is no estimated date of completion at this time, but we are being told it is a matter of days, not weeks. Due to the overwhelming amount of calls, the best way to correspond with the DOL is via e-mail, which has a turn-around time of about 13 days. For more information go to

 Fraud Alert/ Economic Impact Payments (Stimulus Checks)

The IRS is urging taxpayers to be on the lookout for scam artists trying to use the economic impact payments as cover for schemes to steal personal information and money.

– The IRS will not call, text, email or contact you on social media asking for personal or bank account information – even related to the economic impact payments.

–  Watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds.

For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is not sure they are receiving a legitimate letter, the IRS urges taxpayers to visit first to protect against scam artists.

Due Date Reminder

Below is summary of upcoming due dates for Federal and PA returns. We recommend confirming and double-checking the due dates of any other state and local filing requirements in your area, as due dates, especially for local taxes, have been changing regularly in response to the COVID-19 crisis. Reach out to us if you have questions regarding specific states or municipalities.

               Individual tax return filing and payment                              7/15/20
               (Including HSA and IRA contributions)
               Individual first quarter estimated payment                          7/15/20
               Individual second quarter estimated payment                    6/15/20

               Individual tax return filing and payment                             7/15/20
               Individual first quarter estimated payment                         7/15/20
               Individual second quarter estimated payment                   7/15/20

As always, If you have questions or concerns on how these programs or other provisions in the CARES Act may impact your situation, please reach out to your Bertz, Hess & Company Contact , or contact us at
We wish and you and all those around you continued safety and good health.
The Bertz, Hess & Company Professional Team
News > Cares Act / Stimulus Update