- The initial $349 billion has been exhausted but there is a second round of $310 billion that is expected to be voted on and passed today
- Per the last update there was 1,661,367 total loans through over 4,975 lending institutions
- Overall average loan size is $206K
- Idaho had 13,627 loans with a total loan amount of $1.8 billion amongst these loans
- We are finding that many of the banks changed the original SBA application questions to something similar but still not the same. It is very important that you know what you “certified to” on your initial application as it could have some very negative consequences
- We are finding a wide variety of calculations that are being used in order to determine the amount that businesses will qualify for
- There are actual rules and we are seeing that people are being approved for more or less than what they should be approved for. Bank are not required to do this calculation and certification – the business does. The bank will not be on the hook – the business will be. In order to receive forgiveness we do feel like businesses will have to support their original calculations as to what they were approved for and we do think that there will be some really negative surprises as the numbers will not check out like they should have. This could be a bit dangerous if you then are trying to apply for forgiveness.
- If the business was approved for too much it may make it difficult for you to spend the necessary amount to make the loan forgivable
- There is still a lot of confusion on what the PPP money can be spent on and when it has to be spent by
- There still seems to be a lot of confusion as to how the debt forgiveness calculation actually works which we think could lead to some negative surprises.
- We currently do not have all the guidelines on how the calculation will go but we do have enough to know what steps business should be taking now in order to maximize forgiveness. You will not want to wait and hope that the loan forgiveness calculation works out.
Economic Injury Disaster Loans
- The initial funds have been exhausted but there is also a second round of funding that is expected to be voted on and passedtoday
- These can be a good option if you don’t qualify for the PPP loans
- Loan amount can be up to $2 million with a 30 year term
New Unemployment Benefit Category
- There is a new category of unemployment that did not previously exist for those that own a sole proprietorship, single member LLC, S-Corp owners that previously exempted out of unemployment, and partnership owners. If you fall into one of these categories, unemployment may be a good option for you. But you must be careful so that you do not end up paying the unemployment benefits back at a later time. There will be some specific steps you may need to follow in order to help ensure you don’t have to pay it back
Expanded Emergency Paid Sick and Family Medical Leave Acts
- We are still getting a lot of questions on if an employee qualifies for this and what the employer has to do
- There are some very specific things that need to be done in order to qualify for the refundable credits from the IRS
- The tracking and calculation is a bit complex but vital in order to get the credit. You can receive the credit immediately
Employee Payroll Credits
- If your business operation was partially or fully suspended (not just affected but actually suspended) due to government orders then you can qualify for refundable payroll credits.
- Wages paid from March 13 – December 31 can potentially qualify
- This could be significant for those that had businesses that were forced to partially close during the stay at home order such as Dentists/medical groups that could only see emergent cases.
Tax Return Deadlines
- The second quarter 2020 federal estimated tax payment is now due July 15th instead of the original June 15th due date
- The first quarter 2020 estimated tax payment is also due July 15th