PPP Loan Update and July 15, 2020 Deadline Reminders

Good Morning, Please see below for a PPP Loan update and reminders about the upcoming tax deadline. Revised PPP Loan Forgiveness Application The SBA recently issued revised Paycheck Protection Program (PPP) Loan Forgiveness Applications to reflect recent favorable changes to the forgiveness calculation. These applications and instructions are accessible below: PPP Loan Forgiveness Application PPP Loan Forgiveness Instructions PPP Loan Forgiveness EZ Application PPP Loan Forgiveness EZ Instructions The EZ Application is available if the borrower meets any one of the following: Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the ...

PPP Update: Revisions to Previous Guidance

Last night, Wednesday June 10, 2020, the SBA issued revisions regarding the Payroll Protection Program (PPP) Loans, including the following: Maturity date For loans made before June 5, 2020, the maturity is two years; however, borrowers and lenders may mutually agree to extend the maturity to five years For loans made on or after June 5, 2020, the maturity is five years Deferral period If a borrower submits to its lender a loan forgiveness application within 10 months after the end of the “loan forgiveness covered period”, no payments of principal or interest on the loan will be required before ...

PPP Update: Loan Forgiveness Flexibility Provisions and Clarifications

Last evening, Wednesday June 3, 2020, the Senate passed the Paycheck Protection Program Flexibility Act of 2020. The significant provisions of the bill, which was previously introduced by the House of Representatives, and is expected to be signed by the President, are the following: Borrowers can choose to extend the eight-week “covered period” to 24 weeks, or they can keep the original eight-week period. This provides additional time to spend funds on potentially forgivable expenses. The payroll expenditure portion drops from 75% to 60%, meaning 40%, rather than 25%, of expenditures may be used for rent, mortgage interest and utilities and ...

PPP Update: Loan Request Certification Safe Harbor Announcement

Good evening, In recent weeks, as revelations surfaced about big businesses receiving loans under the Payroll Protection Program (PPP), the Treasury Secretary announced that the SBA would be conducting reviews of all large borrowers (in excess of $2 million) and selected smaller borrowers. The SBA issued further guidance requiring all borrowers to assess their economic need for the PPP loan and, in particular, the required certification that was made on the PPP loan application which stated “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” The guidance went on to say that borrowers must make ...

Mississippi Tax-Filing Deadline Extended to July 15th

Good afternoon, The Mississippi Department of Revenue has extended the due date for filing 2019 income tax returns and making first and second quarter 2020 estimated tax payments to July 15, 2020. This extension applies to Individual Income Tax Returns, Corporate Income and Franchise Tax Returns, and Fiduciary Income Tax Returns. Previously, the Mississippi Department of Revenue had only extended the deadline to May 15, 2020. This July 15, 2020 extended filing deadline is consistent with the Federal filing extension period and that of most states, including Alabama. Should you have any questions or concerns, please do let us know. We wish ...

PPP Update: Second Round of Funding

The House of Representatives is scheduled to vote today, April 23rd, on a $484 billion interim coronavirus relief package. This Paycheck Protection Program and Health Care Enhancement Act, once approved by the House, is expected to be signed by the President. Included in the provisions are the following: $310 billion to replenish the Payroll Protection Program $75 billion for hospitals $25 billion for disease testing $60 billion in disaster aid Due to the high demand for the Payroll Protection Program loans, it is anticipated that the funds will be depleted quickly. If you have not yet submitted your loan application to your financial institution, ...

PPP Update: Loan Applications Self-Employed Individuals (Independent Contractors or Sole Proprietors)

Good afternoon, Please see below for much-awaited guidance released late yesterday regarding loan applications for Self-Employed Individuals: Eligibility for PPP Loan You were in operation on February 15, 2020 Your principal place of business is the United States You filed, or will file, a 2019 Form 1040 Schedule C Self-Employed Partners in a Partnership or LLC Include as payroll cost (up to $100,000 annualized) on an application filed by the partnership or LLC Not permitted to submit a separate application as a self-employed individual Maximum Loan Amount if No Employees Net profit from 2019 Form 1040 Schedule C Line 31 ...

Alabama tax-filing DEADLINE to July 15, 2020 has been EXPANDED

Good Afternoon, Following up on the Federal announcement this morning, the Alabama Department of Revenue announced this afternoon that Alabama taxpayers can defer state income tax payments due on or after April 1, 2020 (previously April 15,, 2020) and before July 15, 2020, to July 15, 2020 without penalties and interest, regardless of the amount owed. This deferment applies to individuals, trusts and estates, corporations, fiscal year S-Corporations and fiscal year partnerships. These extensions also apply to Business Privilege Tax and Financial Institution Excise Tax. We will continue to keep you informed as additional information becomes available and please do not hesitate to reach ...

Federal tax-filing DEADLINE to July 15, 2020 has been EXPANDED

Good Morning, Previously, the Secretary of the Treasury granted an extension of time until July 15, 2020, to make payments and file tax returns that were otherwise due April 15, 2020. Late yesterday, additional broad tax filing and payment relief was granted. This additional relief applies to certain taxpayers who have a filing requirement or payment deadline on or after April 1, 2020, and before July 15, 2020. During this period, there will be no interest, penalty, or additional tax assessed. Payment and filing obligations included in this additional relief are: Individual income tax payments and return filings on Form 1040 Quarterly estimated ...

PPP Loan Application Update

Good Morning, Passing along brief updated guidance that was published by the SBA last night. A revised application was released, which can be accessed here. E-signatures can be used. Confirm with your lender regarding protocol for submission Payroll period to be used is generally calendar year 2019, unless you are a seasonal business Confirms independent contractors do not count as employees when calculating payroll costs. Question 7 changed. Currently, it reads: “Is the United States the principal place of residence for all employees of the Applicant included in the Applicant’s payroll calculation above”. It previously inquired about the U.S. citizenship status of 20%+ ...