Yesterday, we posted details on the relief available to businesses impacted by COVID-19 and how to know if you are qualified to apply for it. Today, we have new information and links to sample applications that we can share as well.
Starting April 3, small businesses and sole proprietorships can apply for and receive Paycheck Protection Program (PPP) loans to cover their payroll and other defined expenses through existing SBA lenders. In the meantime, a sample application has been released, and you can download it here.
On April 10, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll as well.
The list of SBA lenders is changing rapidly, so we encourage you to contact your local bank where you have a relationship first and ask if they are an SBA-approved lender. If they aren’t, they will be able to point you to one that is.
This document from the Treasury department shares all the details on the PPP loan program.
Additionally, if you qualify for an economic impact payment which goes directly to taxpayers, you should receive the money within the next three weeks. For those that have their tax refunds direct deposited, the payment will be deposited into the account you have on record with the IRS. For those that don’t do this, checks will be mailed. PLEASE NOTE: the IRS will not call you to ask for your account information. Unfortunately, there are many scammers posing as the IRS calling unsuspecting people to try to gain access to their accounts.
The amount of the payment is determined based on 2019 tax return data, if that return as been filed, or 2018 tax return data if you haven’t yet filed for 2019. Payments are up to $2,400 for married couples filing joint returns and $1,200 for single taxpayers. If your adjusted gross income is over $75,000 (single) / $150,000 (joint) / $112,500 (head of household), your advanced relief payment is reduced by $5 for every $100 over the threshold, and at $99,000 (single) / $198,000 (joint) / $136,500 (head of household), you do not qualify for a payment. You can read more details in this Journal of Accountancy article.
We are doing our best to keep as up-to-date as possible and share information as it comes out, but if you have any questions about your specific situation, don’t hesitate to email or call us.