Alexandra Quitko Discusses the CARES Act with Financial Advisor Magazine
On Friday, March 27, Congress passed the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, a federal stimulus program aimed, in part, at helping small business owners mitigate the financial stress caused by the COVID-19 pandemic. To learn more about ways financial advisors can assist their small business-owning clients with the CARES Act, Financial Advisor Magazine recently spoke with Alexandra Quitko, wealth advisor at Omnia Family Wealth.
One thing that Quitko says financial advisors need to understand in regard to the CARES Act, is that for most of their clients with small businesses, their businesses are their “babies.” Closing their doors or laying employees off is not just a business decision, but also an emotional trauma.
“Business owners need to be talking to their trusted fiduciary right now to determine which of the programs under the CARES Act is best for them,” said Quitko. “We hope this period of distress will only be for a few months. Our clients need their employees – many of whom are like family – to be there when we come out of this so they can rebuild their businesses and be profitable.”
There are two different loan programs with different rules, different repayment provisions and different usages available for small businesses through the CARES Act. These owners need to understand which they qualify for and whether they will be required to repay the loans, Quitko said. That’s where financial advisors come in by explaining their options and knowing all the program details.