Information is posted in the order it becomes available and verified. Please contact us with any questions you may have regarding your unique situation. We are here to help you and your business in any capacity that we can. Due to a high volume of responses we ask that you please book a phone or zoom consultation so that we can assist you. Thank you in advance and be well. – Tamika-Marie Smith
Things have gotten a little sticky as Congress goes back to the drawing board. Thousands of small business owners found themselved locked out of the PPP program that has only been active for one week! Pitting micro business owners against mid sized businesses of up to 500 employees. On the EIDL front the original loan which promised up to 2 million in funding has been reduced to correlate with the number of employees, meaning the proposed balance of $10K will now pay out $1,000 per employee.
Businesses without a payroll are encouraged to to apply for unemployment. Here is the state of California, it has been rumored that an additonal $600.00 will be added to each payout for anyone who qualifies for $1.00. Although they have been more than 2.3 million application to date, I have not heard of any confirmation.
The IRS has rolled out an online option to provide Non filers the ability to update and input their correct informaiton for the stimulus payout. Also expected in the coming weeks is an option for people who have already filed to update their address and direct deposit informaiton. Please follow the diretions and do not use the Non-filers link if you receive SSI, Social Security or are required to file a tax return and have not done so yet. To get to the IRS website Click here.
The Cares Act of 2020 & The small business PPP stimulus packages are rolling out this week. Each focuses on both individuals, sole proprietors, and small businesses. Click here to read the full Bill.
INDIVIDUALS AND FAMILIES
The stimulus payment is calculated on the last filing of your 2018 or 2019 tax return. A one-time payment of $1,200 is issued per adult and $500.00 per child. Income requirements phase out for those who gross over $75,000 for single filers and $135,000 for joint filers. At this time there are no additional funds that will be made available outside of a stimulus built into an unemployment claim. You can check the status of your stimulus payment by clicking here. A website will be developed by the treasury department in the coming weeks. If you have not already filed your taxes, contact us for our current reduced rates.
INDEPENDENT CONTRACTORS & SOLE PROPRIETORS
Often overlooked, the State of California has included provisions for independent contractors to file a temporary unemployment claim based on previous work history and/or your current classification. Get the details by clicking here. The E.D.D. is working diligently to get payments out and Governor Newsom has waived the 1 week waiting period. You can still expect checks or payments to be disbursed within 2-3 weeks after approval of your filing. If you think you may qualify for unemployment, click here to start a claim for the state of CA or google your local employment development department.
There are several quantifying factors to qualify for the CARES Paycheck Protection Program, which is set to kick off April 3, 2020. The main contingency is that most businesses must have fewer than 500 employees and your business had to be established prior to February 15, 2020. The loan amounts will be forgiven as long as the following applies: The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan are made. Employee and compensation levels are maintained. Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to the likely high subscriptions, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months. When can I apply? April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program. You can apply with any bank that is approved to offer SBA Loans. $349B has been earmarked and the qualifications will be the same for ALL applicants. Click here for a sample application.
Based on the information available now, an EIN or FID number will suffice. If personal credit scores are a concern, please reach out so that I can help you prepare. This loan/grant is available until June 2020. I will update you all as that information changes. I am here to assist anyone in preparing their application or preparing records to submit. For more info about the application process through the Small Business Association, click here.