President Trump signed H.R. 7010 on June 5, which modifies the original CARES Act in an attempt to make the Paycheck Protection Program (PPP) more accessible to small business owners. Let’s take a look at the changes and how they impact your business during these stressful economic times.
CSI Accounting Staff
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Whether you haven't received funding or you still need to apply for the Paycheck Protection Program, there is good news with latest reports from released by the U.S. Small Business Administration – PPP funding is still available!
We are here to help answer any questions you might have about how the PPP funding process works and keep you updated on the most current news regarding funding.
On Friday, May 15th the Small Business Administration (SBA) released the PPP Loan Forgiveness application along with detailed instructions for the application. It's our goal to help simplify this process and get you the information you need. Below we've put together a list of the components necessary for the PPP Loan forgiveness application.
With the impact of the Coronavirus crisis affecting people all over the country, the IRS and the Treasury Department have said that payments promised to Americans will begin being distributed in the next three weeks, providing a lifeline to those whose financial lives have been impacted by the pandemic. This Washington Post article provides a specific timeline for when individuals can expect to receive their payment. For most people, the distribution will be automatic and there will be no action required of them.
As a small business owner, you are likely being bombarded with information about funding available through the Small Business Administration (SBA) Paycheck Protection (PPP) Loan program (part of the CARES Act) right now. Everyone, from your banker, banks you've never heard of, to software companies, are sending out messages and wanting a piece of the pie.
When you have questions and need help, turn to those you already know and trust,
CSI Accounting & Payroll.
CARES Act to Permit Business Loans To Cover Payroll, Rent, Utilities, and more while Expanding and Increasing Unemployment Benefits
Please read, understand the opportunity and importance, and reply — we're here to help!
Loans and grants to small businesses including sole proprietors and independent contractors in the CARES Act are on a first come, first served, basis. Once loans have been approved up to the appropriated amount, the program ends (unless Congress appropriates more funds).
If you and your small business need help with covering payroll, rent, and utilities — PLEASE DO NOT DELAY in applying for this program or in contacting us for help!
Businesses struggling with the economic impact of the COVID-19 pandemic crisis received good news late last night when the Senate passed an unprecedented piece of legislation aimed at providing a massive stimulus to workplaces and employees alike.
Any reduction in the amount of loan forgiveness will be completely avoided if the employer re-hires all employees laid off (going back to February 15, 2020), or increased their previously reduced wages, no later than June 20, 2020. These provisions are designed to provide an incentive to employers to not lay off workers (or rehire them) and instead utilize the loan amounts to pay payroll and other expenses.
What’s the Process?
Paycheck protection loans are fully guaranteed by the federal government through December 31, 2020 (previously guaranteed at 85%). The standard fees under section 7 of the Small Business Act are waived and there is no requirement that the loans be personally guaranteed by the borrower. Loans will be available immediately through SBA-certified lenders, which include banks, credit unions, and other financial institutions. The SBA will also be required to streamline the process to include additional lenders into the program and to ensure that funds are dispersed to qualified businesses as soon as possible. The deadline to apply for paycheck protection loans is June 30, 2020.
The most significant provision of the CARES Act for employers establishes new “paycheck protection” loans administered by the Small Business Administration (SBA) to help employers continue to cover payroll costs and other expenses during the COVID-19 crisis. The covered period for loans is February 15, 2020 through June 30, 2020.
People First Initiative - IR-2020-59, March 25, 2020
To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.
The Families First Coronavirus Response Act was signed into law on March 18, 2020.
In the coming days and weeks, federal regulatory agencies, including the Department of Labor (DOL) and Health and Human Services (HHS), will provide guidance on how to execute or implement the new requirements. In the meantime, employers and advisors must rely on a good faith interpretation of the act’s text.
We are sharing everything we know below and will not be able to answer follow up questions about the act until agency guidance has been released, which will take some time. We will update the HR Support Center when we have more information, and we encourage you to check there.
