April 1, 2020

As noted previously, we are continuing “business as usual” in a remote-work capacity. If you need to reach us for any reason, simply call or email as you would have before.

Here’s What the CARES Act Means for You and Your Business

Dear Clients and Friends,

I hope this email finds you safe and well. You are likely to have heard that the CARES Act has been passed and in it are many stimulus packages designed to stabilize the economy. Some parts pertain to individuals and some to business; we will detail the most relevant to you below. In order to keep you well-informed, we plan to follow this newsletter with additional ones explaining other implications of the stimulus package and related developments.

All of us at the Dowling Group are here to help however we can. Please reach out to us via phone or email if you have questions or would like to talk.


Stimulus checks will be mailed out or directly deposited into individual bank accounts within the next 3 weeks. The bill provides for a payment to eligible taxpayers of $1,200 for an individual filing single or $2,400 for married taxpayers filing jointly plus $500 for each child.

  • The amount of your stimulus check is dependent on your 2018 or 2019 income as reported on your tax return. You can use this calculator to estimate your possible check: https://www.forbes.com/advisor/personal-finance/stimulus-check-calculator/
  • Those with adjusted gross incomes up to or less than the following will receive the full payment:
    • $75,000 for single
    • $150,000 for married filing joint
    • $112,500 for head of household
  • Those with adjusted gross incomes between the above and the following will receive partial payments:
    • $99,000 for single
    • $198,000 for married filing joint
    • $136,500 for head of household

For taxpayers under 59.5 years of age, the 10% early withdrawal penalty of up to $100,000 from retirement plans will be waived. Note that while the penalty is waived, tax must still be paid on the distribution. However, the tax is spread out over three years (or you can elect to have it taxed all in 2020).

It also provides a temporary waiver of required minimum distributions (RMD) for 2020. If you already took your RMD there is no provision to put it back.

In addition to state unemployment insurance, federal unemployment insurance increases benefits by up to $600 per week. It also adds an additional 13 weeks of coverage. There are provisions for the self-employed to receive unemployment as well.


The $350 billion SBA Payroll Protection Loan (PPL) is the big news for organizations with fewer than 500 employees. Those involved with small businesses, 501(c)(3) nonprofits granted SBA access for the first time, sole proprietors, and independent contractors will be affected. Here are the key points:

  1. Loans are 100% guaranteed by the SBA. Lenders will not require FICO scores, financial statement information, personal loan guarantees or collateral.
  2. Maximum loan amounts are calculated by multiplying average monthly payroll costs (PC) by 2½. This calculation must exclude annual PC amounts for a single individual above $100,000 and workers outside the United States. A company with average $100,000/month PC after the exclusions can get a loan of $250,000.
  3. Based on a formula, if the company has essentially the same number of employees and close to the same payroll at the end of this emergency as it had beforehand, and the loan is expended within an 8-week period for payroll costs and certain operational expenses, the loan is forgiven, with forgiveness nontaxable.
  4. Any part of the loan not forgiven because these conditions were not met becomes a maximum ten-year government guaranteed SBA loan at 4% interest.
  5. The SBA is shortly expected to issue rules for both bankers and borrowers to clarify procedures and answer open questions, after which they will permit the banks to take loan applications. Interested parties should inform their bank’s SBA lending officer now and be put on the waiting list. If you need a local option for an SBA loan, we can recommend Jenniffer Yan at Greenwich Bank & Trust. She can be reached at 203-698-4033.

As we review more of the bill we will relay important sections. We are putting together financial planning strategies to share in our next email, so stay tuned. In the meantime, please reach out to us with questions and stay well.

Wishing you and your families well,
Sean M. Dowling, CFP, EA
President, The Dowling Group Wealth Management

Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.

  • Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
  • Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
  • The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
  • All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
  • The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
  • The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
  • Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
  • The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
  • The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
  • International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
  • Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
  • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
  • Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
  • Past performance does not guarantee future results. Investing involves risk, including loss of principal.
  • You cannot invest directly in an index.
  • Stock investing involves risk including loss of principal.
  • The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Economic forecasts set forth may not develop as predicted and are subject to change. Investing involves risk including loss of principal.
  • The Price-to-Earning (P/E) ratio is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means investors are paying more for each unit of net income, thus, the stock is more expensive compared to one with a lower P/E ratio.
  • These views are those of Carson Group Coaching, and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice.
  • This newsletter was prepared by Carson Group Coaching. Carson Group Coaching is not affiliated with the named broker/dealer.
  • The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
  • Consult your financial professional before making any investment decision.

ADV & Investment Objectives: Please contact The Dowling Group if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account. Our current disclosure statement is set forth on Part II of Form ADV and is available for your review upon request.