RRF, SVOG and PPP & Gavin
Will the acronyms never end?
What a week. This week:
RRF – Restaurant Revitalization Fund: Applications are accepted starting today at 9:00 a.m.!
SVOG – Started last week and goes on until funds run out.
PPP & Gavin: Can you deduct your PPP expenses? Maybe, maybe not. Today, we ask Gavin – NOT!
The RRF: There are two stages to the RRF: registration and application. The registration window opened on Friday and applications open today. This is a limited fund program and the first 21 days are focused on women-owned, veteran, socially and economically disadvantaged individuals (there is actually an SBA definition of economically disadvantaged). Additionally, $5B is set aside for establishments with 2019 revenues less than $500,000, and $4B for revenues $500,001 to $1,500,000. Also, $500 million is set aside for restaurants with revenues of not more than $50,000. APPLY NOW!! The general SBA link is here: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund
SVOG – After a false start in early April, the program kicked off last week on the 26th and by all accounts, successfully. This program can replace up to 45% of lost revenues for qualified venues so the upside is significant. The first two weeks will focus on venues that lost 90% of their revenues when compared from 2019 to 2020. The general SBA link is here: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/shuttered-venue-operators-grant
PPP & The Governor: The California governor must be very confident that he will not be recalled because with the signing of AB 80, he stated that only companies that showed a decline of 25% of revenue for any one quarter can qualify to deduct expenses paid for by PPP money, calling it a $6.2B tax cut. It is nothing of the sort; in fact, it is a tax increase because the PPP funds are not revenue, so to not allow expenses to be deducted, you have increased their taxes. That aside, here is the criteria: If you experienced a 25% reduction in revenues in any one quarter from 2019 to 2020, you can deduct the expenses paid for by the PPP loan. If you cannot prove that, the expenses are not tax deductible. Don’t forget to vote.
Finally… as of April 25, $248B in loans have funded for 2021. That leaves about $34B for the next four weeks before the program expires. MANY SOLE PROPRIETORS STILL DO NOT KNOW ABOUT THIS PROGRAM – ENLIGHTEN THEM!!
Until next week…
