As we continue to comb through CARES ACT and related resources available, here’s the latest:
1st Draw PPP Rules Updates
Tax deductibility of expenses previously excluded
ERTC and PPP are NO LONGER mutually exclusive
Additional eligible expenses now allowed to be included (operations and supplier costs).
The EIDL advance is no longer deducted from PPP forgiven loan amounts
Further guidance for the First Draw PPP can be found here.
2nd Draw PPP
Eligible entities with <300 employees that have experienced a >25% reduction in gross receipts in any 2020 quarter as compared to same quarter in 2019.
Traditional Lenders (Banks) becoming available, see SBA Form
3rd Party - Smart Biz Loans or Lendistry – (they administer the CA Grant below)
Check with your original lender as they may not require back up as they would already have it on file from the 1st PPP
Further guidance for the Second Draw PPP can be found SBA website or in this article from the AICPA. The application can be downloaded here.
Employer Retention Credit (ERC)
Revenue reduction requirement is 50% decrease or more in any quarter in 2020 compared to the same quarter in 2019
For 2021 quarters there's a limit of $20,000 in qualified wages resulting in a 70% credit verses the original $10,000 in wages with a 50% credit available in 2020
Revenue reduction in 2021 only needs to be 20%
Can be used for payroll costs not covered by the PPP
More information on the ERC can be found on the IRS website.
Re-opening soon. If you are in a low-moderate income area and did not receive an EIDL Advance OR did not receive the full $10,000 you are eligible to receive the full $10,000 advance. More information on that here.
California Small Business COVID-19 Relief Grant
Governor Newsom and the Legislature announced a package of assistance for small businesses impacted by COVID-19, including $500 million in grants. Additional assistance announced via this letter on tax relief and recovery loans through the California Rebuilding Fund.
Round 1 approval notifications will go out between January 15 - January 22.
Round 2 opens February 2nd and closes February 8th. Apply for Round 2 here.
Oceanside Small Business Grants
The Oceanside City Council has approved $750,000 in funding for small businesses impacted by COVID-19. Grants are awarded to businesses based on priority through 3 tiers provided on the Oceanside Chamber website as well as through demonstration of financial injury shown on a Profit & Loss Statement.
Announced January 2020, deposits are based on your 2018 or 2019 tax return. Funds will be deposited into the account on file.
7(a), 504 or Microloans
The SBA will pay up to 6 months of your principal, interest and any related fees for all current and new loans. Contact your lender with any questions. Additional information can be found here.