The U.S. Small Business Administration (SBA) and Treasury issued guidance Wednesday on the evening of the 10-day deadline enacted with the Consolidated Appropriations Act of 2021.  The guidance was released with two interim final rules related to the reestablished Paycheck Protection Program.  This morning, the SBA also released top line overviews of the first and second draw programs and indicated they would begin accepting applications from certain lenders Monday January 11.

Join us Tuesday January 12^th at noon to review the most current information on the PPP, updates on the Employee Retention Credit and other information and updates related to the COVID19 Economic Relief bill. … Read More

On December 27, the President signed the Consolidated Appropriations Act, 2021 (CAA 2021) which included increased funding for the Paycheck Protection Program and allows for previous borrowers to request a “second draw.” The recently enacted COVID relief bill permits PPP2 loans to be issued immediately.

Keep in touch with your lender to understand when they anticipate accepting applications.

PPP2 Highlights:

• Targets businesses who experienced a 25% decline in gross revenue in any quarter of 2020 over 2019
  • Special rules exist for new businesses; reach out to cares@brinkersimpson.com for more information if you need assistance determining if your new business is eligible
• Loan amount of up to 2.5X average monthly payroll costs for 2019 or trailing 12 months  (up to $2 million)
• Restaurant / hotels
  • Businesses with the NAICS code beginning 72 are eligible for 3.5X average monthly payroll and waived affiliation rules
• 501(c)(6) organizations are newly eligible
• Expands expenses eligible for forgiveness
• Program ends 3/31/2021

Estimates indicate at least 50% of first round PPP borrowers could be eligible for round 2. … Read More

The Paycheck Protection Program (PPP), a provision in the CARES Act, provides forgivable loans for businesses impacted by the devastating financial impact of the COVID19 epidemic.  Under Section 1106(b) of the CARES Act, these covered loans are eligible for full forgiveness if certain criteria are met.

The language in the CARES Act guided the general understanding of borrowers and advisors that the PPP loans and associated forgiveness would be tax-exempt.  The IRS later clarified that no deduction would be allowed for any expenses that resulted in forgiveness of the loan reducing the benefit of the loans based on marginal tax rate and potentially resulting tax liabilities that devastated businesses will not have the liquidity to pay. … Read More

The Internal Revenue Service (IRS) has extended the deadline to register for an Economic Impact Payment to November 21, 2020 from October 15.  The IRS announced the extended deadline through a press release October 5, 2020.  The IRS announcement can be read in full HERE.

The IRS urges people who don’t typically file a tax return – and haven’t received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.

This additional time into November is solely for those who have not received their EIP and don’t normally file a tax return.… Read More