Most United States taxpayers are eligible for a second Economic Impact Payment, or stimulus payment, from the US government to help them cope with the economic downturn caused by the COVID-19 pandemic. Most Americans will receive the Economic Impact Payment automatically via paper check or direct deposit. Certain individuals who did not receive their stimulus payment during the first round may be eligible to claim a Recovery Rebate Credit.
A second round of Paycheck Protection Program loans (PPP) will reopen on Monday, January 11, 2021. Initially, PPP loans will only be available through financial institutions that serve women- and minority-owned businesses. PPP loans will open to first-time borrowers through those institutions on Monday, and to second-time borrowers on Wednesday, January 13. PPP loans will be available through all institutions “shortly thereafter,” according to the Small Business Administration and United States Treasury. The closing date for applications for the second round of PPP loans will be March 31, 2021.
Effective since December 27, 2020, COVID-19 relief bill HR 133 contains business-friendly provisions, including a second round of Paycheck Protection Program (PPP) funding. The bill provides relief to individuals as well, including extended employment benefits, stimulus payments, and other tax relief.
The United States House of Representatives passed a $900 billion COVID-19 relief bill on Monday, December 21, 2020. The bill contains business-friendly provisions that expand Paycheck Protection Program (PPP) loan forgiveness rules, eligibility, and tax deduction opportunities. The bill is effective as of Sunday, December 27.
The US Small Business Administration (SBA) recently expanded its rules for Paycheck Protection Program (PPP) loan forgiveness. New regulations allow businesses to spend a smaller percentage of their PPP loan proceeds on payroll costs, have a longer time to rehire their workforce, and get more time to spend their loan proceeds, among other changes. But how exactly is PPP loan forgiveness calculated, and how does the process work? There are a few critical pieces of information that businesses should know when seeking PPP loan forgiveness.
Significant retirement savings incentives are currently available under the tax code, including employer-sponsored qualified retirement plans, such as 401(k) plans, and non-qualified plans like traditional and Roth individual retirement accounts (IRAs). Now is as good time as any to review and evaluate your retirement savings and cash in on the benefits available.
Beginning on June 15, 2020, the Small Business Administration (SBA) reopened the Economic Injury Disaster Loan (EIDL) program to new qualified applicants. Low-interest EIDL loan funds are available to certain small businesses and US agricultural businesses to help them cope with the economic impact of the coronavirus (COVID-19) pandemic.
New proposed legislation may allow business owners in the United States to take out a second Paycheck Protection Program (PPP) loan. The Prioritized Paycheck Protection Program (P4) Act is geared toward businesses with 100 or fewer employees who have used up or will soon finish the funds from their first PPP loan and who also have lost 50% or more revenue due to the coronavirus (COVID-19) pandemic. The bill would also extend the loan application deadline for businesses from June 30 to Dec. 31, 2020. The P4 Act has support from both political parties.
The US government recently passed the Paycheck Protection Program Flexibility Act of 2020 (PPPFA), which makes it easier for businesses to get forgiveness for their Paycheck Protection Program (PPP) loans and offers additional sources of relief. Recently, the Small Business Administration (SBA) released additional guidelines to clarify the original policy.