26 Jan NEW STIMULUS FUNDS AVAILABLE: Important updates to the prior email sent on 12/21/2020
On 12/21/2020 — We provided you with much of this information before the newest Stimulus Bill was even signed into law on 12/27/2020 – EVEN BEFORE THE NEWS MEDIA! However, BELOW is the most current IMPORTANT information, further clarification, additions and reminders:
1. PPP Loan Forgiveness will now NOT be taxable – regardless of how much PPP funding that your business received. Now, expenses that were to be used for PPP Forgiveness calculations will be able to be expensed on a business’s tax return. If you already paid estimated taxes for your business on anticipated 2020 PPP forgiveness, this amount can be applied to your 2021 taxes owed next year, or refunded to you when we prepare your 2020 tax return(s).
2. There is another round of PPP for businesses called “Second Draw” PPP (PPP2) available to businesses with under 300 employees. However, they must prove that they have fully used the first PPP amounts, that their gross revenue dropped by 25% or more in the 1st quarter, 2nd quarter, 3rd quarter OR 4th quarter of 2020 versus the same quarter in 2019. You must be in business as of February 15, 2020. You must have used all of the funds from PPP1 to be able to apply for PPP2. Funds will be available until 3/31/2021 or until the funds have been depleted. Each bank is opening up their application portals at different times to apply for this, but it seems that most banks are NOW ACCEPTING APPLICATIONS! If you are an existing monthly accounting client at Unbehagen Advisors, we have a special, customized, financial report for your business that will identify if you qualify for PPP2, so please reach out to firstname.lastname@example.org if you wish for this report to be emailed to you — and as always, please contact us with any questions. FOR FURTHER INFORMATION ON THIS CLICK ON SBA PPP SECOND DRAW INFORMATION
3. You may apply for the first round of PPP (PPP1) still if you missed it the first time. Funds will be available until 3/31/2021 or until the funds have been depleted. Each bank is opening up their application portals at different times to apply for this again, but it seems that most banks are NOW ACCEPTING APPLICATIONS!
4. The forgiveness process will be simplified further for PPP loans $150,000 and less. There is now be a one page forgiveness attestation page for these loans, making the process simplified even more for these loans. The banks that clients used for the PPP are only starting to complete their portals for this process now. Please reach out to your PPP lending bank to ask when this will be available if you PPP1 loan was $150,000 or less.
5. Meals will be 100% deductible in 2021 and 2022 for businesses — if meals are purchased from a ‘restaurant.’
6. Individuals that are under certain income thresholds ($75K single and $150K married – with other phaseout amounts) will receive another round of individual direct stimulus payments. This time they will be $600 per adult and $600 per certain dependent. If you have your direct deposit banking information already on file from the first round of direct deposits. If you did not receive this yet, or you do not receive it during this round, there is an opportunity to claim this amount on your 2020 1040 individual income tax return — IF you qualify.
7. Unemployment payments will be extended through 3/14/2021 and will now be $300/week to those that are receiving the Federally funded portion of unemployment
8. The EIDL advance payment (the initial amount paid up to $10,000 as a grant) will no longer be reduced in the PPP loan amount forgiven, and will not have to be paid back.
9. Below is a link to a NEW grant from the SBA for qualifying businesses (see below for eligible businesses)! It is the SBA “Shuttered Venue Operators Grant.” The application is not yet available on the SBA website, but will be soon, and there are $15 Billion in funds available. So, keep checking back to the SBA website for further information on this – and to apply. Here is the link for all the information that is available at this time on it: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/shuttered-venue-operators-grant#section-header-0
Who can apply for the SBA Shuttered Venue Operators Grant?
Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives, and
- Each business entity owned by an eligible entity that also meets the eligibility requirements
Other requirements of note:
- Must have been in operation as of February 29, 2020
- Venue or promoter must not have received a PPP loan on or after December 27, 2020