Updates Regarding EIDL & PPP Loans

To our small business owner clients, we wanted to be sure to give you the latest information we have received regarding the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).

EIDL Reopens to All Businesses

Small Business Association reopens EIDL to all businesses.

The SBA has reopened the Economic Injury Disaster Loan (EIDL) to all eligible small businesses. If you are interested, do not delay — we do not know when the application will close again.

The EIDL provides low-interest, long-term loans to small businesses that can be used for working capital, payroll, accounts payable, and short-term debts. This program also provides up to $10,000 advance ($1,000 per employee, up to $10,000) that does not need to be paid back. Click here for more details.

If you have already applied and have an application # that starts with 3, you do not need to reapply.

Paycheck Protection Program Changes

There have been some important changes to the Paycheck Protection Program (PPP).

Highlights of these changes include:

  • Requires at least 60% of the funds be spent on payroll
  • Extends period to 24 weeks of loan issue or through Dec. 31, whichever comes first
  • Defers repayment at least 10 months
  • Extends loan maturity period to 5 years
  • Extends period to restore staff or salary levels
  • Provides clarification if you are unable to rehire staff

Click here for more details.

In addition, the SBA & Treasury released an updated forgiveness application based on these changes. Applications can be found here:

EZ Forgiveness Application: For those who fit in the below categories:

  • Self-employed with no employees; OR
  • Those who did not reduce the wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Those who have experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the wages of employees by more than 25%

Full Forgiveness Application: For all others who don’t apply to the categories above.

Deadline: 6/30/20. Contact a participating lender.

2019 Tax Deadline

2019 Tax Deadline is July 15, 2020.  Image is a a logo for the Internal Revenue Service.

If you have not already filed your 2019 taxes, the deadline is approaching fast. The tax deadline is JULY 15, 2020.

We have office appointment times available in both the Brunswick and Augusta locations, or if you prefer you may still mail, email or fax your information to the office. If you require an extension you may still file for your personal taxes, please contact the office.

Extension deadlines are September 15, 2020, for corporations and October 15, 2020, for personal.

Updates Regarding Unemployment

The Bureau of Unemployment Compensation

Maine Dept. of Labor will begin taking claims for the Pandemic Unemployment Assistance program on May 1st. The program covers those who are self-employed, or otherwise ineligible for traditional state unemployment benefits. Please do not apply until 8 a.m. on May 1, when the new application becomes available. More information can be found on the State of Maine’s PUA webpage: www.maine.gov/unemployment/pua.

Rick also listened in on a webinar today, regarding PPP loans and Unemployment and learned the following…

  • If you receive a PPP loan you can still apply for unemployment benefits to cover the period from 2/15/20 until you received your PPP loan money.
  • If your tax return showed zero net income from your business you can apply for unemployment and get a minimum of $172/week PLUS the extra $600/week ($772 total per week)

Didn’t get your stimulus payment? Here’s what the IRS says you need to do…

Didn't get your stimulus payment. We have advice for you.

The IRS said they are working on fixing some issues pertaining to the “Get My Payment” portal and that updates should be available daily. Here are some of the most frequently asked questions and their responses:

Q: I am getting a “Payment Status Not Available” error – What does that mean?

Your information proving eligibility hasn’t been processed yet or you are an SSA/RRB recipient and data for those individuals aren’t yet available.

Otherwise, according to tax officials, these are your most likely scenarios:

  • If you are not eligible for payment (see IRS.gov on who is eligible and who is not eligible)
  • If you are required to file a tax return and have not filed in tax year 2018 or 2019.
  • If you recently filed your return or provided information through Non-Filers: Enter Your Payment Info on IRS.gov. Your payment status will be updated when processing is completed.
  • If you are an SSA or RRB, SSI or VA benefit recipient – the IRS is working with your agency to issue your payment; your information is not available in this app yet.

Q: What does “Need More Information” mean?

The IRS has confirmed that you are eligible for your stimulus payment but doesn’t have current or active banking information to process your direct deposit.

  • Just verify your 2018 or 2019 tax return information and input a valid routing and checking account number. Users of prepaid or “digital-only” banking accounts are also eligible.
  • You should then get it within seven days, according to some media reports.

Q: The IRS sent my payment to a closed, frozen or otherwise inaccessible bank account, what’s next?

  • If your payment date has been scheduled and processed, your bank will likely reject the direct deposit and send it back to the IRS.
  • At this time, officials say they will be dispersing rejected direct deposits by mailing checks to your last-known mail address.
  • According to the IRS website: “Get My Payment will not allow you to change your bank information once your payment has been processed.”
  • It adds, “no action is needed to contact the IRS as phone assistors won’t be able to change your bank information either”

Q: I requested a direct deposit, why am I getting a mailed payment?

  • The IRS says those who it determined to have invalid bank account information will be getting their payment mailed to the address on file.
  • “Those who did file, but did not include direct deposit information, should use “Get My Payment” to provide their banking information to get their Economic Impact Payment immediately,” the website said.

The Latest News Regarding Stimulus Checks

Didn't get your stimulus payment. We have advice for you.

We hope you are all staying safe and healthy during this unprecedented crisis we are all facing these days. We are still working in the office, preparing taxes and trying to keep updated on the daily changes with the government and IRS business loans and stimulus checks.  

Many clients have contacted the office regarding the fact that they either pay the IRS from their tax returns or have just received checks in the mail for their refunds so they are not sure where or how to give the IRS their direct deposit information.  

IRS Direct Deposit

The IRS website now has a location to enter your direct deposit information so that you may receive your stimulus check much faster. Here are the steps:

  • Click on the link below and it will bring you to the IRS Economic Impact Payments page.
  • Look for a tab that says Get My Payment.
    • Be sure to have your most recent tax return handy (2018 or 2019) as you will need some information from it.