Recently signed Consolidated Appropriations Act. 2021, incorporated enhancements to the CARES Act, and extending numerous expiring tax provisions for both individuals and businesses. The previously passed CARES ACT (The Coronavirus Aid, Relief, and Economic Security Act) provided relief to individual Americans, healthcare workers, small business and certain industries hit by the pandemic.
For Businesses, another round of Paycheck Protection Program (PPP) is loans available, deductions for expenses paid with PPP loan proceeds, and additional time is provided for paying previously deferred payroll taxes.
For Individuals, payments of $600 to individuals with adjusted gross income (AGI) of $75,000 or less (or $112,500 AGI for heads of households), payments of $1,200 to joint filer with AGI of $150,000 or less, and an additional $600 payment for each qualifying child.
HERE ARE TWO LOAN PROGRAMS SHOWN BELOW TO HELP GET YOU FINANCIAL AID -
(1) PPP & (2) EIDL
THIS LOAN PROGRAM WAS RECENTLY MADE AVAILABLE FOR APPLICATIONS UNTIL MARCH 31, 2021.
THIS LOAN IS AVAILABLE FOR FIRST-TIME BORROWERS AND TO PREVIOUS PPP RECIPIENTS.
APPLICATIONS ARE MADE THROUGH YOUR BANK OR LOCAL SBA OFFICE
- Please call if you need assistance.
PPP Second Draw Eligible Entities:
Seasonal Employers have an option of selecting any 12 week period between 2/15/2019 & 2/15/2020, for computing average total monthly payroll
Loan amounts are based off of 2.5 times the average monthly payroll costs in the year prior to the loan or the calendar year. Food Service and Accommodation entities loan amounts are based off 3.5 times the average monthly payroll costs.
You can choose your covered period, employees are kept on payroll for eight weeks or twenty four weeks, from the date PPP proceeds are received, SBA will potentially forgive the portion of the loans used for payroll, rent, covered mortgage interest, or utilities. The borrower must maintain a 60/40 payroll to non-payroll expenditure ratio to receive full forgiveness.
Second Draw Loans adds additional expenditures allowed to be used towards potential loan forgiveness; Covered worker protection and facility modification expenses, Covered Operations Expenditures, Covered Property Damage Costs, Covered Supplier Costs.
The new bill specifies PPP loan proceeds will not be included in taxable income and business expenses paid with forgiven PPP loan funds are tax deductible.
The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $2 million for payroll and certain other expenses.
To apply for a COVID-19 Economic Injury Disaster Loan
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
The Small Business Administration (SBA) issued the Paycheck Protection Program loan forgiveness application. There are three different applications that can be completed based on your facts and circumstances regarding the loan, employees paid or unable to pay. The forgiveness application is filed through your lender who issued the PPP loan funds to your business.
The forgiveness form includes step by step instructions on how to complete the application. If you are in need of assistance in filing the application or in gathering the documents to file the forgiveness application please contact us. We are here to help!
The deadline to file for forgiveness is 10 months from the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
The Consolidated Appropriations Act simplified loan forgiveness applications for loans under $150,000.
Link to PPP loan forgiveness - frequently asked questions:
For business taxpayers -
For business taxpayers, the CARES Act -
The newly passed bill extends pandemic unemployment assistance benefits created under the Cares Act through March 14, 2021. The federal supplement to unemployment insurance benefits for eligible individuals is $300 per week beginning December 26, 2020, and ending March 14, 2021. Benefits are extended from 39 to 50 weeks. All benefits will expire on April 5, 2021.
the CARES Act -
This information does not, and is not intended to, constitute legal advice; instead, all information, content and marketing materials available are for
general informational purposes only.
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