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. 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 most, that is a business with 500 or fewer employees. The SBA’s online tool can assist you in determining your qualification as a small business. Also, note that participation in the following programs may limit your access to others passed under the CARES Act.
Paycheck Protection Program (PPP)
- 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
- US Treasury Interim Guidance - PPP loans
- Sample Borrower Application – applications are processed only by SBA-approved lenders
- Frequently Asked Questions
- American Institute of Certified Public Accountants (AICPA) on PPP loans
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.
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 – Rodolfo Paredes, CPA, Tax and Director of International Division
Additional Deadline Extension for Federal Taxes (4/9/2020)
The IRS has expanded its March announcement of extended filing and payment deadlines for federal income taxes to include most taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15, 2020. This includes second quarter 2020 estimated payments which are now due on July 15, 2020. Anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.
Deadline Extensions for Federal Tax
The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can't file by the July 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request an extension to file their return.
Note: second quarter federal estimated payments are due July 15, 2020.
Deadline Extensions for State of Arizona
The Arizona Department of Revenue (AZDOR) has announced it has moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020 following direction today by Governor Doug Ducey. This is consistent with Treasury Secretary Steve Mnuchin’s announcement that the Internal Revenue Service (IRS) has moved the deadline for 2019 federal tax returns to July 15, 2020. However, the state has not extended the payment deadline for first quarter 2020 estimated tax payments, which are still due April 15, 2020.
The announcement by ADOR includes individual, corporate and fiduciary tax returns.
Note: second quarter Arizona state estimated payments are due June 15, 2020.
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.