New PPP Loan

The second round of the paycheck protection program (PPP loan) filing deadline is 3/31/21.

The government just introduced a second round of the paycheck protection program (PPP loan). If you did not receive a PPP loan from the first round, you automatically qualify for this second round. If you did already receive a PPP loan you will have to prove that in at least one quarter in 2020 you were down at least 25% from the same quarter 2019. You can get an application from your bank. The deadline for signing up for this second PPP loan is March 31st. You can find additional information on the site. Let us know if you have any questions or need help filing out the application. 

Additional information you will need at your 2020 tax preparation appointment.

Calendar showing the March 15 and April 15 Business Tax Return due dates.

In 2020 the government introduced many new programs to help us all get through the Covid-19 Pandemic. If you received any of the following grants or loans, Rick will need this information to complete your tax return.

  • PPP Loan information
  • EIDL loan/grant from the SBA
  • Unemployment insurance. You will need the 1099 they will send you at the end of January
  • Seafood Trade Relief Program (STRP) grant
  • Any other loan or grant that you received.

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.