As we approach the new year, it's crucial to stay informed about the latest developments…
Today is a mixed emotional day for my family, as 20 years ago today my father and our company founder passed away. Not a day goes by that I don’t think about him.
Lots of information to share again today!
The biggest news is that today the SBA PPP loan program has officially run out of money. If you’ve applied for the SBA PPP loan and you don’t have a loan number issued by the SBA, then you will not be included in this first round of funds in the CARES Act.
Congress has been working the past week on CARES Act Part 2, which should include more funding for this program. We also heard the administration is supposed to put out an executive order mandating the SBA continue to accept these loan packages so they are ready when the next funding is approved. This has not been released yet by the White House, but it should be soon.
In addition, the new bill supposedly is going to include some type of a federal subsidy for employees that have been laid off and are on Cobra. Nothing has passed yet, and it still is under debate, but look for more information coming out soon.
If you have not been successful in getting your loan processed, fear not. The Congress will pass something!
The scary part is that each side is adding wish list items to piggy-back along with this new legislation. Congress is not currently in session, so a bill must pass unanimously in order to go through. That is currently the biggest holdup.
In the SBA guidelines I sent out yesterday (and have attached again today) a big item of clarification is for the partners in a partnership (like an LLC filing taxes as a partnership). The IRS is limiting a partnership and its partners to one PPP loan that encompasses all partners. The self-employment income of general active partners may be reported as a payroll cost, up to $100,000 annualized on a PPP loan filed by or on behalf of the partnership.
I also found out today that the matching FICA portion employers pay as part of their payroll taxes is not forgivable.
- DAS CDC Guidelines – these are good guidelines to follow that have been put out by the CDC. If you have any questions about any of this information please email email@example.com we are happy to help!
- More Taxpayer Relief – the IRS has issued some more guidance on the taxpayer relief and due dates
- SBA Interim Final Rule – this is the same document that I attached yesterday and contains the new SBA guidelines for partners in partnerships who pay themselves via distributions.
Please know we are here to help, so please share this information with anyone you think can use it. Feel free to email me anyone you would like included on this list.
Have a great day!