Terranova & Associates, LLC strives to keep our clients up to date during these unprecedented times with the fluid Government COVID - 19 tax changes that will affect you.
Small Business Administration announced Monday that starting February 24, 2021 there would be two weeks for businesses with less than 20 employees to be able to apply for Payroll Protection Program Loans. This is good news for small businesses.
The SBA issued the following:
The latest round of Paycheck Protection Program funding opened one month ago and already the Biden Administration has succeeded in making major improvements to the program’s implementation:
· For businesses with fewer than ten employees, the share of funding is up nearly 60%
· For businesses in rural communities, the share of funding is up nearly 30%
· The share of funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%
“The SBA is a frontline agency working to create an inclusive economy, focused on reaching women-owned, minority-owned, low- and moderate-income, rural, and other underserved communities in meaningful ways. While reported data illustrates we have made real strides in ensuring these funds are reaching underserved communities, we believe we can still do better,” says SBA Senior Advisor Michael Roth. “The important policy changes we are announcing further ensure inclusivity and integrity by increasing access and much-needed aid to Main Street businesses that anchor our neighborhoods and help families buildwealth.”
These simple progressive steps by the Biden-Harris Administration further demonstrate the commitment to racial and gender equity, reaching low and moderate-income, rural, urban, and other underserved areas. The SBA will:
· Establish a 14-day, exclusive PPP loan application period for businessesand nonprofits with fewer than 20 employees
· Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
· Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with abipartisan congressional proposal
· Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participatingin the PPP; and
· Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
These actions will help to lay the foundation for a robust and equitable recovery for small businesses across the country. Small businesses employ nearly half of the American workforce; they create 2 out of 3 net new private-sector jobs; they reinvest 68% of revenues to build and sustain communities. Borrowers can apply for the Paycheck Protection Program by downloading the First Draw PPP loan
application or Second Draw PPP loan application and working with a participating PPP lender through the SBA Lender Match tool.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.
We are available for consultations regarding this and other tax matters if you need assistance, please contact us. We are excited to welcome the new clients that have retained our services!
This is our update as of this time and we will strive to keep you informed; please keep in mind this is a fluid topic and subject to change at any time.
This information should be used to strategically navigate through the months ahead. We are in the office and are happy to assist you.
Please feel free to share this with your relatives and friends and remember we are here to help our clients during this difficult time
Terranova & Associates, LLC.
Thomas D. Terranova, Jr., CPA, PFS, CITP
150A Andover Street, Ste 11C
Danvers, MA 01923
Tel: (978) 774-7700 X 104, Fax: (978) 774-7705
E-mail: tomt@terranovacpa.com
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