SBDC: Second Stimulus Bill Updates

Portsmouth NH

31 December, 2020

3:37 PM

Description

Member news from the Chamber Collaborative of Greater Portsmouth: December 30, 2020 Like many of you, we are eagerly awaiting the full details of the Federal Stimulus Bill. Rest assured that SBDC is doing our homework and planning ahead so we are ready to help the Granite State's small businesses navigate the new and revised programs available in 2021. In the meantime, here are a few highlights from the legislation: · $284 billion added to the Paycheck Protection Program (PPP) for additional forgivable loans. · For those taking a "second draw" on the PPP loan program, you must have under 300 employees and be able to demonstrate a revenue loss of 25% or more in one quarter of 2020 as compared to the same quarter in 2019, to qualify. · Businesses with an NAICS code of 72 (restaurants and hospitality) are eligible for an increased loan amount equal to 3.5 months of their average monthly payroll (compared to 2.5 months of payroll for other businesses). · The eligible uses of funds has been expanded to include "operation expenses", "supplier expenses", and "worker protection expenses". The requirement to spend at least 60% of the loan on payroll costs remains the same (group life, disability, vision, and dental insurance now qualify as payroll costs). · Congress made several changes to the PPP Forgiveness process for both new and existing loans. · SBA must create a new forgiveness form within 24 days for all loans under $150k. The form must be no more than one page and simply require the business owner to describe how the money was spent and make certain certifications. The amount of required supporting documentation will also be reduced with this new form. · The Economic Injury Disaster Loan (EIDL) Advance deduction from PPP forgiveness was repealed in this legislation. Your EIDL Advance (between $1k and $10k) will no longer be deducted from your PPP Forgiveness amount. This applies to both those that have yet to file for forgiveness AND those that have already processed their forgiveness paperwork. · The bill also reversed an IRS rule prohibiting the deduction of expenses paid for with forgiven PPP loan proceeds. You will now be able to deduct business expenses paid for with your PPP loan (payroll, rent, mortgage interest, and utilities) on your 2020 taxes. · Congress renewed the debt relief program for borrowers with existing SBA 7a,504, and/or microloans. Starting in February 2021 those borrowers will have 3 months of principal and interest paid by the government. The "hardest hit" borrowers may be eligible for an additional five months of debt relief, depending on certain qualifications. · Congress expanded the Employee Retention Tax Credit to cover 70% of eligible employment taxes and extended it through July 1, 2021. Critically, the legislation allows those who have received PPP loans to also access this tax-credit, so long as they do not claim payroll that was paid for with PPP loan proceeds. · The bill provides $20 billion in funding to restart the Economic Injury Disaster Loan (EIDL) advance grant program to give up to $10,000 grants to small businesses in low-income communities. · The legislation created a new program called "Grants for Shuttered Venues". Eligible live venues, museums and movie theaters will be able to receive grants of up to $10 million which they can use for certain operating expenditures. · Finally, an additional $10 billion in funding was set aside for Childcare Stabilization Grants. This will help childcare centers that are open or temporarily closed fund their operating expenses. We encourage you to register for one of the four COVID relief program webinars listed below and connect with your SBDC Advisor early in the new year. If you are not yet a client of SBDC, make signing up for SBDC's free, confidential advising services one of your New Year's Resolutions! Stay well and happy holidays! The SBDC Team Request Advising COVID Relief Webinars NH SBDC Updates on PPP and COVID Relief Programs Webinars January 6 | 10am January 8 | 1pm January 12| 10am January 14 | 1pm The new stimulus bill makes more funds available to small businesses. Join us to find out more details on how the bill can impact your business. Presented by Chuck Gilboy, NH SBDC Business Advisor Register for PPP Webinars SBA Webinar Wednesday The SBA has programs and services that help small business owners start, grow, expand and recover. Get the latest updates on federal relief programs every Wednesday morning, 9-10am at this Teams meeting link. Visit the SBDC COVID-19 website. Check out SBDC's webinar calendar. Request SBDC advising. NH SBDC is NH's premier business advising resource. SBDC's team of certified business advisors provides highly individualized, confidential advising and education at no cost to NH enterprises. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration (SBA ) and through assistance provided by the State of New Hampshire. The NH SBDC is an outreach program of the UNH Peter T. Paul College of Business and Economics in conjunction with SBA, the State of NH (BEA), the University of NH, and the private sector. NH Small Business Development Center | 10 Garrison Avenue, Durham, NH 03824 Sent by [email protected] powered by Try email marketing for free today! This press release was produced by the Chamber Collaborative of Greater Portsmouth. The views expressed are the author's own.