News & Tech Tips

New PPP Changes For Small Businesses

Kathleen Hargrove on February 23, 2021

The Biden Administration announced this week that it will institute a two-week period starting Wednesday, 2/24 during which only businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans.

 

The exclusive application window is one of several moves the White House said it is making to further target the PPP funds to the smallest businesses. The administration also will:

 

  • Change the PPP loan calculation formula to help sole proprietors, independent contractors, and self-employed individuals receive more financial support. In addition, $1 billion will be set aside for businesses in this category that don’t have employees and are located in low- and moderate-income areas. Details of the changes have not yet been released.

 

  • Eliminate a restriction preventing small business owners with prior nonfraud felony convictions from obtaining relief through the PPP.

 

  • Remove a rule preventing small business owners who are delinquent on federal student loan payments from securing a PPP loan.

 

  • Allow noncitizen small business owners who are lawful U.S. residents to use individual taxpayer identification numbers (ITINs) to apply for relief.

 

The administration said the 14-day exclusive application period is designed to help the 98% of small businesses that have fewer than 20 employees, noting that these businesses often struggle more than larger businesses to collect the necessary paperwork and secure a PPP loan through a lender.

 

The White House statement also said that the administration would continue to work with lenders and other stakeholders to address PPP processing delays caused by anti-fraud validation checks that must be completed before loan guaranty approval is granted. The statement said the U.S. Small Business Administration (SBA) would continue to work with lenders to create streamlined processes to resolve issues as quickly as possible while still working to ensure taxpayer funds are spent wisely.

 

The administration also will make the following moves:

 

  • Update key areas of SBA websites to help more applicants find resources for understanding relief options and completing applications.

 

  • Continue to conduct stakeholder outreach to learn more about challenges and opportunities in the implementation of current emergency relief plans.

 

  • Launch a new initiative to increase communication with lenders. Specifically, the SBA will increase opportunities for lenders to provide recommendations and ask questions about the PPP. The goal is to drive resolution of open questions and concerns in a more streamlined way.

 

The application window for the current $284 billion iteration of PPP is scheduled to close March 31.

 

For any questions regarding this announcement or assistance with your PPP filing, please contact your Whalen advisor.

 

 

Source: Journal of Accountancy

Small Business Relief Grant

Kathleen Hargrove on October 29, 2020

The Small Business Relief Grant is designed to provide relief to Ohio businesses that have been negatively affected by COVID-19.

 

Governor Mike DeWine has designated up to $125 million of funding received by the State of Ohio from the federal CARES Act to provide $10,000 grants to small businesses to help them through the current crisis.

 

The program, which will begin accepting applications November 2, 2020, will be administered by the Ohio Development Services Agency.

 

For the full Terms and Conditions for participation in the Small Business Relief Grant, please click here.

 

 

For questions or assistance with the application process, please contact your Whalen advisor.

 

 

 

SOURCE: Ohio Development Services Agency

PPP Loan Forgiveness Relief for Small Borrowers

Kathleen Hargrove on October 9, 2020

The SBA and Treasury Department released additional guidance related to the Paycheck Protection Program (PPP) this week. The guidance covers a simplified forgiveness application process for loans of $50,000 or less, clarification of the deferral period for PPP loan payments, and procedures required for changes of ownership of an entity that has received PPP funds.

 

An interim final rule was issued that provides a simplified application to be used by recipients of PPP loan of $50,000 or less, and exempts these entities from and reductions in forgiveness based on reductions in full-time equivalents, and reductions in employee salary or wages. A Journal of Accountancy article detailing the changes can be found here.

 

Frequently asked question No. 52 was issued that clarifies that the Paycheck Protection Flexibility Act of 2020, P.L. 116-142,  extended the deferral period for loan payments to either (1) the date that SBA remits the borrower’s loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. The extension of the deferral period automatically applies to all PPP loans. A Journal of Accountancy article detailing the FAQ can be found here.

 

In addition, SBA issued a procedural notice that describes when a change of ownership is considered to have occurred and the responsibilities a PPP borrower continues to hold regardless of any change in ownership. The guidance clarifies requirements and may help businesses that have been trying to go through the forgiveness process quickly because of an impending transfer of ownership. A Journal of Accountancy article detailing the procedures notice can be found here.

 

For any questions or for clarification on any of these updates, please contact your Whalen advisor for assistance.

Trump Signs Additional Small Business Coronavirus Relief Bill

Kathleen Hargrove on April 24, 2020

President Trump has just signed a $484 billion interim coronavirus bill into law that includes additional money for the small-business loan program, as well as more funding for hospitals and testing.

The bill passed the Senate earlier this week and was approved by the House yesterday.

It includes more than $320 billion for the Paycheck Protection Program, or PPP, created by the CARES Act, which was passed late last month.

The PPP, which provides forgivable loans to small businesses that keep their employees on the payroll, had quickly run out of money due to high demand

About $60 billion of the additional PPP funding will be set aside for businesses that do not have established banking relationships, such as rural and minority-owned companies.

The bill also provides $60 billion in loans and grants for the Small Business Administration’s disaster relief fund, $75 billion for hospitals and $25 billion for coronavirus testing.

Another expansive round of coronavirus legislation is expected to be released in the coming weeks. We will continue to monitor this and keep you updated on any new information.

If you think your business is eligible for assistance and has not already received funding through this program, we are happy to help guide you through the process.

 

As always, feel free to reach out to your Whalen advisor with any questions on this new bill or anything else you may have questions about during this time.

 

Families First Coronavirus Response Act

Kathleen Hargrove on March 21, 2020

The Senate passed the House Coronavirus Bill (The Families First Coronavirus Response Act) on Wednesday, and it has been signed into law by the President. This is the second package from Congress dealing with the Coronavirus outbreak.
 
Congress and the Administration are now working on a third phase to further stem the impact of the outbreak on families and the economy which would include stimulus checks.
This bill responds to the coronavirus outbreak by providing paid sick leave and free coronavirus testing, expanding food assistance and unemployment benefits, and requiring employers to provide additional protections for health care workers.
It also provides FY2020 appropriations to the Department of Health and Human Services for nutrition programs that assist the elderly.
The supplemental appropriations provided by the bill are designated as emergency spending, which is exempt from discretionary spending limits.
The bill modifies USDA food assistance and nutrition programs to:
  • Allow certain waivers to requirements for the school meal programs
  • Suspend the work requirements for the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program)
  • Allow states to request waivers to provide certain emergency SNAP benefits
In addition, the bill requires the Occupational Safety and Health Administration to issue an emergency temporary standard that requires certain employers to develop and implement a comprehensive infectious disease exposure control plan to protect health care workers.
The bill also includes provisions that:
  • Establish a federal emergency paid leave benefits program to provide payments to employees taking unpaid leave due to the coronavirus outbreak
  • Expand unemployment benefits and provide grants to states for processing and paying claims
  • Require employers to provide paid sick leave to employees
  • Establish requirements for providing coronavirus diagnostic testing at no cost to consumers
  • Treat personal respiratory protective devices as covered countermeasures that are eligible for certain liability protections
  • Temporarily increase the Medicaid federal medical assistance percentage (FMAP)

We are continuing to monitor these rapidly changing situations, and will keep you updated on any developments.

As always, if you have any questions about how these announcements may affect you or your business, please contact your Whalen Advisor.  We are always ready and available for you during this unprecedented time.

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