Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: KIM EVANS, DIRECTOR
SUBJECT: COVID-19 CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITIES (CARES) ACT IMPACT OF SMALL BUSINESS ADMINISTRATION (SBA) LOANS AND GRANTS TO ADULT AND FAMILY MO HEALTHNET PROGRAM PARTICIPANTS
DISCUSSION:
The CARES Act Public Law No: 116-136 was signed on March 27, 2020 to provide economic relief for small businesses impacted by the COVID-19 pandemic. Per guidance in Title I of the CARES Act, the SBA is issuing specific loans and grants to small businesses to cover the cost of wages, paid leave, and other COVID-19 related expenses, and is limited exclusively to business related expenses rather than personally supporting the business owner.
Although there may be a measure of loan forgiveness for business owners receiving funds under the CARES Act when specific requirements are met; per 20 C.F.R. 416.1103(f), cancellation of a debt cannot be considered as income to be used to meet the participant’s needs for food or shelter.
Section 1106(i) of the CARES Act also states forgiveness of loans will not trigger any personal tax liability. Per 20 C.F.R. 416.1201(a), these loans and grants are not considered as income or a resource for Adult MHABD programs. Due to the structural requirements of the SBA loans and grants made available through the CARES Act per Section 1102(a)(36)(F), funds received will not be considered as income for Adult or Family MO HealthNet programs, or as a resource for any Adult MO HealthNet program.
Please refer to policy in the December 1973 Eligibility Requirements manual, under section 1025.015.14 Proceeds From a Bona Fide Loan, and 1025.015.06 Business Accounts in Financial Institutions for all adult MHABD programs and treat as a bona fide loan, except SBA loans and grants will not be counted as income in the month received, or as a resource even if retained into the following month.
Please refer to policy in the Family MO HealthNet (MAGI) manual section 1805.030.20.10 Income Excluded Under MAGI and treat SBA loans and grants as a bona fide loan.
NECESSARY ACTION:
- Review this memorandum with appropriate staff.
KE/vm