April 3, 2020
Instant Business Loans For Small Business Owners
If you run a small business or are self-employed, we want to be sure you’re aware of loans, forgivable loans and grants that may be available to you under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The application period is open and funds are limited, so earlier applicants have a better likelihood of receiving funds.
There are multiple sources of financial assistance for businesses offered, featuring streamlined underwriting for rapid relief. Here is some basic information on a few available programs:
Economic Injury Disaster Advance Loan
Qualified businesses can receive a one-time forgivable advance of $10,000.
This application will provide an instant cash infusion for businesses and it makes sense to be the first action you take, if you haven’t already done so. Please note that you’ll need to report sales and cost of goods sold for 1/31/19-1/31/20 and routing information for direct deposit. The application doesn’t take much time to complete if you have these numbers available. The SBA intends to have these funds deposited within three days. (See links below.)
Paycheck Protection Program
This program is designed to cover your payroll, rent, utilities and other expenses for a period of time, and to encourage retention of employees. Generally, if you retain all of your employees, the full loan will be forgiven. If retain less than all your employees, the loan will be forgiven in proportion to the percentage of the employees you retained. (See links below for more information.)
For All Tax Payers and Investors
Beware of Covid-19 Scams
The U.S. Department of Health and Human Services issued a fraud alert regarding Medicare recipients receiving calls offering fake Covid-19 tests in exchange for personal information. Find more information on how you can protect yourself and vulnerable family members from the latest scams in Sources below.
Updated Tax Deadlines
In addition to the tax filing/balance due deadline extended, the deadline for making most retirement plan contributions for 2020 is also deferred till July 15, 2020. Please be aware, the second quarter estimated tax payment is due as scheduled on June 15, while the first quarter’s payment has been deferred till July 15.
Checks of up to $1200 per adult will be sent to most households in the U.S. in short order. The amount will be based on your 2018 tax return if you’ve not filed for 2019. It is essentially an advance on a tax credit for 2020, so when you file your 2020 tax return next year, it will need to be taken into consideration at that time.
Emergency Paid Time Off (PTO)
If you’re an employee, it’s very likely your employer is now mandated to provide 80 hours of emergency paid time off in case you or someone you care for becomes stricken with COVID-19. This is in addition to existing paid time off or sick leave and is to be used first.
Part time employees receive prorated benefits. If your employer is flexible and you’re working from home, you can stretch these benefits over a longer period of time. Employers will receive tax credits for the emergency PTO that has been provided.
There are also relaxed rules around collecting unemployment, even if you’re self-employed and have suffered a loss of income due to the virus. Some states are waiving the seven-day waiting period and additional benefits have been added. See link below for more information.
As always, please contact us if you have any questions about the changing circumstances surrounding your business and financial world at this time. We're here to help...and have found a way to do it quite well with the team all working from home!