Abedian + Totlian, An Accountancy Corporation

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On July 3, President Trump signed the PPP Extension Act, lengthening the deadline to apply for a PPP Loan until August 8, 2020. The loan program was designed to help keep businesses afloat, and keep paychecks going to employees. With Congress still working on a second funding program to help small businesses and the economy, this extension gives small business owners more time to apply for relief through the PPP Loan. A few things to consider if you haven’t been approved for ...a PPP Loan yet: - About $130 billion in PPP funds are still available. - If you received your PPP Loan but returned the funds, you can apply again. - If you applied for a PPP Loan and were denied, you can apply again. Speak with your lender so you understand why you were denied. If you were rejected because of eligibility requirements, you may want to apply with a different lender. - At this time, you cannot use multiple PPP Loans (however, that could change). As a reminder: -The amount of your loan can be forgiven up to the amount of acceptable expenses (listed below) and payments made during the 24-week period (covered period), which begins on the date of the receipt of the loan from the lender. -To maximize loan forgiveness, at least 60% of the loan amount must be used for payroll costs. Not more than 40% of the loan can be used on non-payroll costs. -The amount of your loan forgiveness will be reduced if you don’t maintain the same number of full-time employees during the covered 24 week period, or if wages are decreased by more than 25% for employees making less than $100,000 per year. If you have laid off employees or reduced their wages, you should hire them back and reinstate their salaries. -If you follow these guidelines, your PPP Loan can be forgiven up to the full amount of the loan, as well as any accrued interest. Acceptable Expenses: -Payroll costs (including payroll benefits) -Interest payments on any covered mortgage obligation incurred before 02/15/2020 -Rent payments under a lease beginning prior to 02/15/2020 -Utility payments for services that began prior to 02/15/2020 (It is unclear at this time what utilities are eligible for forgiveness; we are waiting for further direction from the SBA) It is not required, but it would be smart to open a separate bank account so it’s easier to track PPP Loan funds. Make sure that you start tracking your expenses as soon as you receive the funds from your loan; your books should be accurate and expenses categorized, including dates. Remember that while the SBA oversees the Paycheck Protection Program, the loan comes from your lender. Make sure you understand your lender’s rules for loan forgiveness, and don’t forget to apply for loan forgiveness when the time comes.

If you missed out on our last live-streamed webinar with CPA Emil Abedian at Abedian + Totlian, An Accountancy Corporation , you can now view it for free, via S...ACC-LA's Youtube channel! The webinar includes many answers to questions regarding tax filing, stimulus payments and the PPP loan. Check it out today at "SACC-LA" on Youtube or by clicking on this link: https://www.youtube.com/watch?v=boPFHYfD2HI&t=0s See more

The Paycheck Protection Program Flexibility Act is new legislation that makes some much needed adjustments to the loan program, easing some restrictions on small businesses as they seek loan forgiveness. The bill is just awaiting President Trump’s signature. Changes include: -Current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. New PPP borrowers will have a 24-week covered period, but the covered period... can’t extend beyond Dec. 31, 2020. -This bill lowers the amount of the loan that needs to be spent on payroll from 75% to 60%. However, under the language of the bill, borrowers must spend at least 60% on payroll or none of the loan will be forgiven. -New borrowers now have five years to repay the loan instead of two. Existing PPP loans can be extended up to 5 years if the lender and borrower agree. The interest rate remains at 1%. -The legislation includes new exceptions allowing borrowers to achieve full PPP loan forgiveness even if they don’t fully restore their workforce. Previous guidance already allowed borrowers to exclude from those calculations employees who turned down good faith offers to be rehired at the same hours and wages as before the pandemic. The new bill allows borrowers to adjust because they could not find qualified employees or were unable to restore business operations to Feb. 15, 2020 levels due to COVID-19 related operating restrictions. -The bill allows businesses that took a PPP loan to also delay payment of their payroll taxes, which was prohibited under the CARES Act. Even with these new regulations, there is still much that remains unclear regarding loan forgiveness for the PPP loan. As we receive additional guidance about loan forgiveness, we will keep you updated. As always, if you have any questions, please let us know.

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Free Webinar! Learn more about how to handle the COVID-19 pandemic from a financial point of view with Emil Abedian. Limited spaces available, so register early! Tuesday, June 2 at 11am - Register for free: https://bit.ly/3d9NKHE

Tune in for an interesting conversation with Emil Abedian and Letty Vermeulen

Emil joins the Aspire Talks webinar to discuss the PPP Loan, stimulus payments, and more! Live on Facebook and Zoom TODAY at 2pm. Register for Zoom here: https://bit.ly/2WRNWWe

IRS and Congress have given individuals a number of ways to build up their cash reserves and/or pay less in taxes. Here are a few opportunities for taxpayers.

Join Emil Abedian on the Aspire Talks webinar to discuss the PPP Loan, stimulus payments, and more! Live on Facebook and Zoom on Tuesday, May 26 at 2pm. Register for Zoom here: https://bit.ly/2WRNWWe

The CDC has offered the following recommendations and tips to help keep everyone healthy and safe as we start thinking about returning to our offices and places of business. Updated strategies and recommendations for employers responding to COVID-19, including those seeking to resume normal or phased business operations: - Conducting daily health checks - Conducting a hazard assessment of the workplace...Continue reading

New guidance has been issued from the SBA regarding the qualifications of the Paycheck Protection Program Loan. Based on this guidance, if you believe that the PPP Loan is necessary to support the operations of your business, and that you do not have alternate sources of liquidity, make sure you document why. If you have previously certified your loan eligibility on your PPP Loan application and now believe that your business is not eligible for the loan, you should conside...r repaying the funds or withdrawing your application. The deadline to repay the loan is May 14, 2020. Check out our latest blog post for more information on this new guidance from the SBA.

So, you got your PPP loan... Now what?