As you are probably aware, Congress recently passed additional COVID relief provisions. At this stage, pending regulatory interpretation of the provisions from the Treasury Department, as well as the Small Business Administration, here are bullet points of what we believe is included:
- Additional individual stimulus payments at $ 600 per person – this may be increased at a later date. There are income phase outs as before. You need not do anything, it will be automatic.
- Simplified PPP Forgiveness applications for loans under 150K. We are waiting for guidance on this— so nothing to do as of yet for all forgiveness applications.
- Additional PPP funding has been allocated by Congress. This round will be more stringent and will require demonstrated revenue reductions of at least 25% for specified periods between 2020 and 2019. So, hurry with your year-end accounting.
- It appears as we thought, that PPP loans, as well as SBA loan payment forbearance for the six month period, for those of you who have SBA loans, will not be a taxable event.
- Additional unemployment assistance.
- There are a multitude of other provisions and extenders that we will be monitoring as they affect your individual client situation.
We will keep you apprised as more guidance is published.