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ppp

Jan 14, 2021 by DianeN

PPP LOANS SECOND ROUND NOW OPEN

APPLICATIONS OPEN JAN 15

Washington passed the COVID Relief Bill and one of the programs was a second round of the PPP (Payroll Protection Program). You can begin to apply tomorrow, January 15. Here is what you need to know…

When can I apply?

1. As you know, you must apply for the program through a financial lending institution. These can be banks, credit unions and several other lenders like Square.
2. If your lender is a large bank, over $1 billion in assets, you can apply through them tomorrow, Jan 15.
3. If your lender is smaller, you can apply through them starting Jan 19.
4. If you need to know the size of your lender you can go HERE to find out.
5. You must apply no later than March 31, 2021.

Who can apply?

1. If this is your first PPP loan (first draw) you cannot have received a PPP loan prior to Aug 8, 2020.
2. businesses
3. sole proprietors, self-employed, independent contractors, gig performers
4. 501c3, 501c6, 501c19, tribal organizations
5. housing coops, destination marketing organizations, news organizations

What’s different than the first time?

1. You can choose your “covered period” which is any 8-24 weeks once you are approved and receive your loan disbursement.
2. You will NOT have your EIDL grant deducted from your loan forgiveness. **
3. If you are applying for an amount less than $150k you will file for your loan forgiveness on a simplified form.

If I applied before can I apply again?

Yes.  You would be a “Second Draw”.  You must have used the funds from your first PPP before applying.  There are some exceptions so contact your accountant.

Special Applicants:
SBA will assist eligible borrowers in underserved and disadvantaged communities. At least $15 billion is being set aside for First Draw PPP loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods.

FIRST DRAW LOANS:
What can I use the money for?
Payroll costs, including benefits, mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

How do I get full forgiveness?
If during the 8- to 24-week covered period following loan disbursement:

  1. Employee and compensation levels are maintained;
  2. The loan proceeds are spent on payroll costs and other eligible expenses;
  3. At least 60 percent of the proceeds are spent on payroll costs

How do I figure out the loan amount?
Basically you are applying for 2 1/2 months of your payroll expenses…..
A. self-employed and have no employees:
(and your principal place of residence is in the United States, including if you are an independent contractor or operate a sole proprietorship-but not if you are a partner in a partnership)

  1. Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
  2. Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
  3. Multiply the average monthly net profit amount from Step 2 by 2.5.

B. Business/non-profit with employees:

Compute 2019 payroll costs by adding the following:

  1. 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S
  2. 2019 employer health insurance contributions (portion of IRS Form 990 Part IX line 9 attributable to health insurance);
  3. 2019 employer retirement contributions (IRS Form 990 Part IX line 8); and
  4. 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms).
  5. Calculate the average monthly payroll costs (divide the amount from Step 1 by 12).
  6. Multiply the average monthly payroll costs from Step 2 by 2.5.

C. Self-Employed with employees:

  1. Basically you are going to do both of the above. Figure your payroll like “A” and figure your employees payroll like “B”.
  2. After adding them together, divide by 12 for average monthly payroll costs.
  3. Multiply that number by 2.5.

WE WILL BE HOSTING SEVERAL WEBINARS ON HOW TO APPLY AND HOW TO GET YOUR LOAN FORGIVEN.
Please join us or find our videos on our You Tube channel. If you have questions are have a specific situation we– recommend you discuss this with your accountant. You can also call us at 860-428-7739 or EMAIL us. Our Business Resource Center partner, SBDC can also help you free of charge. Please contact Greg Lewis.

APPLICATION FORM

FIRST DRAW INFORMATION

SECOND DRAW INFORMATION

HOW TO CALCULATE LOAN AMOUNT

SBA GENERAL INFO ON PPP

CTSBDC GENERAL INFO ON PPP

LIST OF LENDERS UPDATE JAN 14, 2021

Filed Under: COVID-19, Grants & Funding Tagged With: COVID, COVID RELIEF BILL, EIDL, FORGIVENESS, ppp

Dec 22, 2020 by DianeN

NEW COVID ASSISTANCE APPROVED BY HOUSE & SENATE

Everyone wants to know what is in the new bill and how it will help their business.  As you know it is over 5000 pages long and includes everything including the kitchen sink.  But this is what we think is most important for you:

  • Extension of repayment and interest on deferred employee social security taxes.
  • Extension of the paid sick and family leave due to COVID until March 2021
  • PPP income will not be considered gross income for tax purposes
  • Certain emergency financial aid to college students will not be considered gross income
  • COVID loans forgiven, EIDL grants and some loan repayments will not be considered gross income
  • There is a second round of PPP:
    • includes 501c6 organizations
    • must have used the first PPP funds
    • under 300 employees
    • demonstrate a 25% reduction in gross receipts in the first, second or third quarter of 2020
    • cannot have received funding under Shuttered Venue Operator Grant program
    • seasonal employers eligible if operates no more than 7 months and earned no more than 1/3 its receipts in any 6 months
    • covered period extended to March 31, 2021
  • Changes to PPP forgiveness to include
    • allow payments for software, cloud computing, and other HR and accounting needs
    • property damage due to pubic disturbances not covered by insurance
    • supplier costs in effect before the loan essential to operations
    • PPP and adaptive investments to comply with COVID guidelines
    • covered period flexibility
    • simplified application for loans under $150,000
    • group insurance programs payments included as payroll costs
    • businesses not in operation prior to Feb 15, 2020 not eligible for round 1 or 2 of PPP
    • interest rates are non-compounding and non-adjustable
  • Creates Grants for Shuttered Venue Operators
    • $15 billion for live venue operators or promoters, theatres, live performances, museums, movies
    • have 25% reduction in revenues
    • $2 billion for entities with less than 50 employees
    • first round for those with 90% revenue loss, second round 70% revenue loss, then open to all others
    • used for payroll, rent, utilities and PPP
  • Extension of loan repayment of SBA loans
  • EIDL grants up to $10k in low-income communities
  • Extends EIDL grant application thru Dec 2021
  • No longer required the repayment of EIDL grants thru a PPP loan/forgiveness (including a refund if it was deducted)

Other parts of the bill include:

  • Enhanced jobless benefits of $300 per week for unemployed
  • Direct payments of up to $600 per adult and child
  • $25 billion for rental assistance and an eviction moratorium extension
  • $45 billion to support transportation services, including airports, Amtrak and airline employees

We will keep you up to date with other changes including sharing webinars explaining these new programs.

 

 

Filed Under: Back To Work 2020, COVID-19, Grants & Funding Tagged With: congress, COVID, ppp, relief

Nov 30, 2020 by DianeN

Windham Region Chamber Joins SAVE SMALL BUSINESS COALITION

The Windham Region Chamber of Commerce is proud to announce that it has joined the nationwide movement to save small businesses and is the first chamber from Connecticut to do so.  The Save Small Business Coalition is a group of over 200 chambers of commerce and business associations across the nation created to address the issues and concerns generated from the COVID pandemic.  This coalition is not about one single industry, this is about all small businesses across the nation that need funds right now to stay afloat to maintain the continuity of their business.   We are asking for extraordinary emergency action by the Government to empower an urgent solution that currently doesn’t exist.

For many months, communities across our nation have seen their local businesses make difficult decisions to reduce hours, lay off employees, and sadly, in some cases, close their doors for good.  Many businesses have not qualified for disaster loan programs and some cannot afford to incur additional debt.  With guidelines changing constantly and business owners trying desperately to meet the requirements, an environment of financial uncertainty has been created.

The SSBS’s latest call to action has been a letter to congress asking for an immediate “Phase 4” bill that includes:

Paycheck Protection Program Extension and Enhancement:

  • Broaden the definition of forgivable expenses to include costs associated with protecting employees and customers and expand the period during which expenses qualify for loan forgiveness.
  • Simplified good faith certification for loan forgiveness of loans under $150,000.
  • Expansion of eligible borrowers to include all non-profits including 501(c)(6) organizations with no more than 300 employees as long as PPP funds are not used for lobbying.
  • Authorization of a second round of loans for small businesses experiencing revenue reductions of 35% or more.

 

Workforce Development:

  • Provide $1.3 billion to assist job seekers access employment, education, training, and support services through a combination of new and existing programs.

 

Business Liability Protection:

  • Protection from COVID-19 related exposure liability for those employers who follow applicable federal, state, or local government guidelines for the protection of their employees and/or customers.
  • Protection from liability claims arising from COVID-19 medical care for healthcare workers and facilities.

 

State and Local Aid:

  • Assist state and local government’s experiencing one-time COVID-related expenses and revenue shortfalls based on fixed share of actual costs and revenue shortfalls within an overall funding cap.

Filed Under: Back To Work 2020, Chamber News, COVID-19, Featured Tagged With: advocacy, assistance, COVID, phase 4, ppp, save small business coalition

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Windham Region Chamber of Commerce
1010 Main St.
Willimantic CT 06226
Phone: (860) 423-6389
Fax: (860) 423-8235

info@windhamchamber.com

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