Paycheck Protection Program (PPP)
- 2021 Economic Impact Payment Status Available - March 15, 2021 - The IRS has a new tool, 'Get My Payment,' for checking when and how they have sent your 2021 Economic Impact Payment if you are eligible to receive one.
- IRS guidance for employers claiming the Employee Retention Credit (ERC) for 2020 - March 1, 2021 - Notice 2021-20 issued today provides clarifications and describes retroactive changes primarily relating to expanded eligibility for the credit.
- Employee Retention Credit (ERC) - January 26, 2021 - Extends COVID tax credit for employers who keep employees on the payroll.
- New simplified form 3805S - January 20, 2021 - A borrower may use this form if they borrowed less than $150,000
- New guidance from US Treasury - November 18, 2020 - If a business reasonably believes its PPP loan will be forgiven in the future, then the expenses related to the loan are not deductible, even if forgiveness has not yet been applied for. Though some expect this may change, as of now, the IRS is taking the stance that these expenses are not deductible. Click here for the details and we'll keep you advised of any changes that may follow.
- SBA Issues Alternative PPP Loan Forgiveness Application. October 16, 2020 - A new, streamlined forgiveness application has been released for PPP loans that are $50,000 or less. For those that qualify, the application requires minimal information. You must certify that the funds were spent on eligible costs but no dollar amount or calculations are required on the form. Documentation still must be submitted to the lender for verification. Contact R&A to discuss the specifics of your situation.
- Payroll Tax Deferral - August 28, 2020 - This new program could provide a temporary wage boost, but employers must consider whether to offer it. Contact R&A to discuss the specifics of your situation.
- Executive order issued August 8, 2020 - This order provides for the withholding, deposit, and payment of certain payroll taxes paid from Sept. 1 through Dec. 31, 2020. Treasury is expected to issue guidance to implement the order. R&A will provide more information as it becomes available.
- The deadline to apply for PPP loans extended to August 8 - July 4, 2020 - Approximately $129B in funding remains. The extended deadline should help small businesses that need PPP loans to help mitigate the impacts of COVID-19. Click here to read the details from the Journal of Accountancy.
- New PPP loan forgiveness application released and new EZ PPP loan forgiveness application now available - June 17, 2020 - The SBA and US Treasury have released two new loan forgiveness applications and related instructions. The revised loan forgiveness application incorporates key program improvements announced on June 3. The new EZ loan forgiveness application The business owners allowed to use the EZ application include those who are self-employed or have no employees and those who did not reduce salaries by more than 25 percent. To use the form, businesses must also certify that they didn't cut employees' hours or were unable to operate at pre-coronavirus levels because of health mandates. Click here for the revised loan forgiveness application; here for the instructions; here for the new EZ applications and here for those instructions.
- Updated key dates - June 3,2020 - Improvements to the PPP were approved this week by the Senate and Congress. The legislation extends the duration of the PPP loans to 24 weeks from eight weeks, giving small businesses more time to use the money and still have the loans forgiven. It also extends the deadline to rehire workers to December 31 to qualify for loan forgiveness. The bill also reduces the level of PPP funds that must be used for payroll to 60% from 75%.
- Updated guidance for PPP loan forgiveness and review - May 27, 2020
- The PPP loan forgiveness application and detailed instructions for completing it have been released by the Small Business Administration (SBA) and US Treasury - 5/15/2020 - Additional guidance is expected from the SBA to assist borrowers in completing the application and for lender regarding their responsibilities.
- Updated guidance for PPP borrowers with loans under $2 million - 5/13/2020 - These borrowers will now be assumed to have performed the required certification in good faith.
- Update - additional funding for partnerships - 5/13/2020 - Some PPP loans were approved to partnerships or seasonal employers before the additional guidance was issued by the SBA. As a result, those businesses may not have received PPP loans in the maximum amount for which they are eligible. All PPP lenders are now authorized to increase existing PPP loans to partnerships or seasonal employers to include appropriate amounts to cover partner compensation. If this pertains to your business, contact your lender for guidance.
- Update - PPP Loan Forgiveness - 5/5/2020 - 5/6/20 - The IRS has extended the certification date from May 7 to May 14, 2020. The SBA intends to provide additional guidance as to how it will review the certification prior to May 14, 2020.
- PPP Loan Forgiveness and Expenses - It had been unclear if taxpayers would both be able to exclude income from PPP loan forgiveness while still deducting expenses paid with forgiven loan proceeds. This notice issued April 30, 2020 makes clear this will not be permitted.
- Maximize Your PPP Funds
- SBA landing page - PPP loans
- US Treasury landing page - PPP loans
- Sample Borrower Application – updated January 8, 2021 applications are processed only by SBA-approved lenders
- Frequently Asked Questions
Calculators provided by AICPA to calculate your PPP loan amount. Select the calculator that matches your situation:
- Non-seasonal & IN business 2/15/2019 – 6/30/2019
- Non-seasonal & NOT in business 2/15/19 - 6/30/19
- Seasonal business
Economic Injury Disaster Loan (EIDL) and Emergency Loan Advance
EIDL rule and loans are now only available to US agricultural businesses; prior applications will still be processed, but new loan applications are only being accepted for agricultural businesses - 5/26/20
CARES Act – Coronavirus Aid, Relief and Economic Security Act
The Act, signed into law on March 27, 2020, is an economic relief plan for individuals and businesses impacted by the COVID-19 pandemic.
Allows for the extension of federal unemployment programs including Pandemic Unemployment Assistance (PUA), Pandemic Emergency Unemployment Compensation (PEUC), and Federal Pandemic Unemployment Compensation (FPUC). These provisions will bring continued unemployment benefits to Arizona claimants.
IRS FAQs - Deferral of employment tax deposits and payments through December 31, 2020 - Employers who have received a PPP loan, but whose loan has not yet been forgiven, may defer deposit and payment of the employer's share of social security tax that otherwise would be required to be made beginning on March 27, 2020, through the date the lender issues a decision to forgive the loan, without incurring failure to deposit and failure to pay penalties.
The CARES Act – Tax Relief for Individuals and Businesses – David F. Samer, CPA, Senior Tax Manager
Small Business Resources
Current resources available for small businesses in Arizona.
Health and Human Services
Maintaining healthy habits such as social distancing, frequent hand washing, not touching your face, staying home when sick, covering coughs/sneezes and cleaning common areas remain paramount. Get more helpful tips and information below:
Families First Response Act - Emergency Paid and Expanded Family Leave
In an effort to provide employees paid family and medical leave and paid sick leave in response to the COVID-19 pandemic, Congress recently passed The Families First Coronavirus Response Act (the Act). The Act will take effect on or by April 2, 2020.
Understanding the New Families First Coronavirus Response Act – Dave Samer, CPA, R&A Senior Tax Manager
Cybersecurity & Fraud
FBI SEES RISE IN FRAUD SCHEMES RELATED TO THE CORONAVIRUS (COVID-19) PANDEMIC
Scammers are leveraging the COVID-19 pandemic to steal your money, your personal information, or both. Don’t let them. Protect yourself and do your research before clicking on links purporting to provide information on the virus; donating to a charity online or through social media; contributing to a crowdfunding campaign; purchasing products online; or giving up your personal information in order to receive money or other benefits. The FBI advises you to be on the lookout for the following:
Fake CDC Emails
Watch out for emails claiming to be from the Centers for Disease Control and Prevention (CDC) or other organizations claiming to offer information on the virus. Do not click links or open attachments you do not recognize. Fraudsters can use links in emails to deliver malware to your computer to steal personal information or to lock your computer and demand payment. Be wary of websites and apps claiming to track COVID-19 cases worldwide. Criminals are using malicious websites to infect and lock devices until payment is received.
Look out for phishing emails asking you to verify your personal information in order to receive an economic stimulus check from the government. While talk of economic stimulus checks has been in the news cycle, government agencies are not sending unsolicited emails seeking your private information in order to send you money. Phishing emails may also claim to be related to:
The FBI is reminding you to always use good cyber hygiene and security measures. By remembering the following tips, you can protect yourself and help stop criminal activity:
- Do not open attachments or click links within emails from senders you don't recognize.
- Do not provide your username, password, date of birth, social security number, financial data, or other personal information in response to an email or robocall.
- Always verify the web address of legitimate websites and manually type them into your browser.
- Check for misspellings or wrong domains within a link (for example, an address that should end in a ".gov" ends in .com" instead).
If you believe you are the victim of an Internet scam or cyber-crime, or if you want to report suspicious activity, please visit the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Small Business Administration (SBA) Funding Opportunities
Funding opportunities for small businesses are crucial and information is changing rapidly. R&A is continually monitoring funding resources, guidance and analysis across industries, and formulating strategies to maximize opportunities. there may be other SBA funding opportunities to consider. Below is our curated list of reliable resources with the up to date information you need.
To participate in the SBA’s loan program, a business must meet SBA’s definition of a small business—for PPP2, that is a maximum of 300 employees. Also, note that participation in the following programs may limit your access to others passed under the CARES Act.