PPP Update and Your SBA Loan - So close and yet so far...
…congress continues to work on a new deal for small businesses. At least they funded themselves for another week.
The Senate proposal would make businesses eligible for a second PPP loan if they have no more than 300 employees and had at least a 30% reduction in revenue when comparing the second quarter of 2019 to the second quarter of 2020. Also discussed are funds set aside for companies with fewer than 10 employees. Included is a fix for the current tax problem faced by businesses that get their loan forgiven. The sticking points are that the senate wants liability protections for businesses in regards to the coronavirus and the house wants aid for states and municipalities. Stay tuned…
The government giveth and the government taketh away Part II: If you have an SBA loan, you know that for six months from April through September, the SBA made your loan payments on your behalf. This was all part of the CARES Act. The intention was to take the burden of the loan payments off of the borrowers for six months while everyone made it through the pandemic. Well… if you have never seen a 1099 MISC, you will now. The current plan is to have those payments that the SBA made for you reported as income. It’s kind of like the expenses paid for by the PPP loan not really counting as expenses. Is this the proof we need that the Grinch really is a government employee?
Beware the end of December: A date that is getting very little attention is 12/31/20. That is the date where you have the last opportunity to bring your FTE count back to where it was on 1/1/20 and/or bring your wages back up to where they were for the first quarter of the year. If you did not reduce your employee count or hours worked, you have no worries. If you did, well, call me if you have questions on this.
This week’s trivia: Did you know that the Department of Defense has a program to find jobs for Military Spouses? Since 2011, more than 175,000 Military Spouses have been hired by over 500 employers who work with the DOD to make the program a success. The SBA is the latest addition to the list of employers.
11 more shopping days till Christmas!
