On Friday, May 22, 2020, the Small Business Administration issued a pair of documents containing much-needed guidance for borrowers and lenders participating in the SBA’s Paycheck Protection Program (PPP).
Responding to the needs of U.S. businesses amid the evolving coronavirus (COVID-19) pandemic, the Federal Reserve Board announced details on April 9 regarding the Main Street Lending Program, which will deliver four-year loans with deferred principal and interest payments to small- and mid-size businesses with up to 10,000 employees and/or less than $2.5 billion in revenue.
UPDATE: The SBA has extended the grace period to May 14, 2020. All other aspects remain unchanged.
The Paycheck Protection Program (PPP) is one of the most influential aspects of the CARES Act legislation enacted by the U.S. Congress to combat the economic effects of the COVID-19 pandemic. In two massive tranches of funding, the PPP pumped nearly $660 billion into the economy and, through the Small Business Administration (SBA), down into the hands of small businesses that are and remain in desperate need.
In response to the coronavirus pandemic and following the lead of the IRS, Glenn Hegar, Comptroller for the State of Texas, announced that state franchise tax filings that are ordinarily due on May 15th are extended until July 15th.
Information continues to come from the U.S. Treasury and the U.S. Small Business Administration about much-needed relief for American small businesses. For a refresher on the key loan options available for small businesses, please see LGT’s analysis of the Paycheck Protection Program (PPP) here, the Emergency Economic Injury Disaster Loan (EIDL) program here, and a comparison of the two types of loans here. Applications for EIDLs are already available online for download, and now so is the PPP Application Form! Before diving in to complete the application, however, take a few minutes to get familiar with some key provisions of the PPP application and process below, and don’t forget to download and review the full PPP Information Sheet from the U.S. Treasury.
When the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the Act), became law on March 27, 2020, it brought with it large-scale programs aimed at bolstering small businesses across the nation.
On Friday, March 20th, Treasury Secretary Steve Mnuchin tweeted that the IRS is moving the tax filing deadline from April 15th to July 15th matching this week’s earlier guidance regarding tax payments due. In a subsequent tweet, the IRS confirmed the move aimed to provide relief for taxpayers affected by the coronavirus pandemic. The move, backed by bipartisan groups in Congress, will afford taxpayers and tax preparers more time to complete returns as many states and localities are affected by office closures and thus have limited access to files and documents needed to file timely.
On Wednesday, March 18, 2020, the U.S. Senate passed H.R. 6201, Families First Coronavirus Response Act, which was signed shortly thereafter by the president. Now that the bill is signed into law, here are some key provisions affecting small businesses set to take effect by April 2nd.
On Wednesday, March 18th, the IRS issued Notice 2020-17, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, which allows for an extension of the payment deadline for individuals and corporations for tax federal payments for 90 days. Individuals that owe money on their April 15th tax filing for 2019 taxes or first quarter 2020 estimated taxes may defer up to $1 million without incurring penalties or interest. Consolidated groups or C corporations that do not join in filing a consolidated return may defer up to $10 million.
I don’t like public speaking. There. I said it. Few things strike fear into our hearts more than when someone asks us to speak in front of a group of people. In fact, people fear speaking in public more than spiders, heights, darkness, and even death. But speaking publicly, particularly in the accounting profession, is how we learn, demonstrate our subject knowledge, and advance our careers. So, grab my hand, sweaty palms and all, and let’s talk about some key characteristics of successful public speaking.