Strategic Direction, Inc.Strategic Direction, Inc.Strategic Direction, Inc.Strategic Direction, Inc.
  • Home
  • The Firm
  • Services
    • Accounting Services
      • Bookkeeping
      • Small Business Accounting
    • Auditing Services
      • Audits of Franchisors
      • Employee Benefit Plan Audits
      • GAAP Consulting
    • Tax Services
      • Corporate Tax Returns
      • IRS Audit Representation
      • LLC’s and Partnerships
      • Trust Returns
  • Tax Resources
  • Blog
  • Contact Us

The Cares Act

    Home Uncategorized The Cares Act
    NextPrevious
    congress

    The Cares Act

    By sdicpaAdmin | Uncategorized | 0 comment | 30 March, 2020 | 0

    Keeping your business going, here is what we know so far…

    As we are sure you know, the CARES Act was passed on Friday. What we all need to keep in mind, is even though there are loans, grants, and various options which will be available, most of them are not ready for the application process.  As of today the SBA and the banks need time to set up their application processes, and make them available to the public.  

    Today Sherry had a conversation with Banner Bank and our source indicated it could be up to two weeks before companies would be able to apply for the SBA Paycheck Protection Loan.  

    With the borrowing options constantly changing, following is the information available now, as things change, we will keep you up to date.  

    The new loans are:

    EIDL (Economic Injury Disaster Loan) you can apply for this now at https://disasterloan.sba.gov

    This particular program offered by the SBA is allowing businesses to apply now (APPLY NOW) for a $10,000 Loan Advance. If approved, the loan advance will be made available within three days of a successful application. The advance will not have to be repaid and you will not owe taxes on this money.  There may be an option for small businesses to qualify for loans up to $2,000,000 to help overcome the current loss of revenue, however, there is a possibility that not all of this will be forgiven.

    Paycheck Protection Loan (PPL) https://www.uschamber.com/co/start/strategy/cares-act-small-business-guide.  You cannot apply for this loan yet.  The good news about this loan is that it can be forgiven.  Please review the above link for more details on the loan.  

    The US Chamber of Commerce has given a good Small business guide and checklist https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf.  This link is a great resource as to eligibility, and what lenders maybe looking for with regards to documents required.  

    Other Options for Businesses

    1.  You may be able to take the Employee retention tax credit if:

    Your business operations were fully or partially suspended due to a COVID-19 shut-down order; or 

    Gross receipts declined by more than 50% compared to the same quarter in the prior year. Eligible businesses can get a refundable 50% tax credit on wages up to $10,000 per employee. The credit can be obtained on wages paid or incurred from March 13, 2020, through December 31, 2020.2.  Businesses and self-employed individuals can delay the employer’s share of Social Security tax payments owed for 2020. For those to take advantage of this, the taxes must be paid over the next two years. Fifty percent must be paid by the end of 2021 and 50% must be paid by the end of 2022. This does not apply to employers who get the Payroll Protection Loan.

    3. Net Operating Loss (NOL) have been relaxed. If your business had an NOL in the tax years beginning 2018, 2019, or 2020 this NOL can now be carried back for five years. Pass-through entities such as LLC’s and S-Corps as well as sole proprietors can also take advantage of the NOL rules.4.  Businesses, especially those in the hospitality industry, will be able to immediately write off costs associated with improving facilities, increasing cash flow.

    If you need assistance applying for the loans are want to discuss if the credits are better for you than the loans please schedule a time to talk to Sherry. https://app.acuityscheduling.com/schedule.php?owner=12992241 

    No tags.

    Related Post

    • piggy bank

      Deferment of Tax Liability

      By sdicpaAdmin | 0 comment

      Today (March 17, 2020), U.S. Treasury Secretary Mnuchin announced the following extensions for federal income tax payments: Individuals and businesses with an April 15 filing deadline will be given an additional 90 days to payRead more

    • dollar bill in front of a wall

      Tax-Day Extension for 2020

      By sdicpaAdmin | 0 comment

      In these new and tumultuous times, please know your team at Strategic Direction, Inc. are working from home to ensure your taxes, audits, and bookkeeping are done on time while we all deal with theRead more

    • US Map

      IRS has followed California’s lead on extending the tax deadline

      By sdicpaAdmin | 0 comment

      This morning Secretary, Steve Mnuchin, announced via Twitter that all taxpayers and businesses will have until July 15, 2020 to file and make payments without interest or penalties. What this means is you can relax,Read more

    • man signing paper

      SBA Economic Injury Disaster Loan

      By sdicpaAdmin | 0 comment

      We know you are facing challenging times in this current health crisis. The U.S. Small Business Administration is committed to help bring relief to small businesses and nonprofit organizations suffering because of the Coronavirus (COVID-19)Read more

    • guy holding newspaper saying Business

      Paycheck Protection Program (PPP)

      By sdicpaAdmin | 0 comment

      An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Here’s the information on how to apply for the PPP loan.  Lenders may be begin processing loan applications as soonRead more

    • calculator and paper

      Getting the Financial Help You Need

      By sdicpaAdmin | 0 comment

      First, we hope everyone is safe, healthy, and entertained! Many banks are supposed to have information on submitting the SBA application for the Payroll Protection Program Loan online today for small businesses. Independent contractors and self-employed should beRead more

    • PPP Forgiveness Application

      By sdicpaAdmin | 0 comment

      The SBA has published its PPP Forgiveness Application (application) and with it, a little more information on how the loans can be forgiven. Here is the link to the SBA application https://www.sba.gov/document/sba-form–paycheck-protection-program-loan-forgiveness-application Here is what weRead more

    Leave a Comment

    Cancel reply

    Your email address will not be published. Required fields are marked *

    NextPrevious

    Recent Posts

    • PPP Forgiveness Application
    • Getting the Financial Help You Need
    • Paycheck Protection Program (PPP)
    • SBA Economic Injury Disaster Loan
    • The Cares Act

    Contact Us

    Phone:  818-937-0888
    Fax:       818-794-7146

    Email: admin@sdicpa.com

    Office:
    (by appointment only)
    14542 Ventura Blvd. Suite 207
    Sherman Oaks, CA 91403

     

    Quick Links

    • Home
    • Services
    • The Firm
    • Tax Resources
    • Contact Us

     

    CAL CPA Logo
    AICPA Logo
    Provisors Logo
    © Copyright 2020 SDI CPA | All Rights Reserved | Developed by White Fox Creative
    • Blog
    • Contact Us
    • Home
    • Services
      • Accounting Services
        • Bookkeeping
        • Small Business Accounting
      • Auditing Services
        • Audits of Franchisors
        • Employee Benefit Plan Audits
        • GAAP Consulting
      • Tax Services
        • Corporate Tax Returns
        • IRS Audit Representation
        • LLC’s and Partnerships
        • Trust Returns
    • Tax Resources
    • The Firm
    Strategic Direction, Inc.