CARES Act 3.5 Passes: PPP Reloaded
April 24, 2020 Update:
After last week’s depletion of the $350 billion initially allocated for the SBA Small Business Relief programs, today the President signed into law "CARES Act 3.5" which includes an additional $310 billion for the Paycheck Protection Program (PPP), $10 billion for Economic Injury Disaster Loan (EIDL) Grants, and $50 billion for other SBA disaster loans including EIDLs. (see Relief Webinar Part Five below for more information). PPP funds are expected to be available as early as Monday. NAMM members should stay in close touch with their SBA-affiliated lender as funds are expected to be depleted quickly. Eligibility rules established in the initial $2.2 Trillion CARES Act, have not changed. Access a summary of NAMM member-relevant provisions and time-sensitive employer, employee and independent contractor action items. Download the summary (PDF).
Lawmakers, scheduled to return to Washington on May 4, are expected to turn next to a broader measure that will include aid to state and local governments, coronavirus caregivers, and possibly for workers at grocery stores, drugstores, and others.
As always, NAMM members should reach out to their Congressional representatives to share the realities of this time and urgency for needed funds to bridge businesses to a post-pandemic revival period.
For more information, watch Small Business Relief Webinar Part V: CARES Act 3.5: Federal Economic Injury Relief Update.
Learn more on NAMM's Issues & Advocacy page.
IRS tax credit options can free up your business' cash and provide additional options.
Filing and Payment Deadline Extended
The deadlines to FILE and PAY federal income taxes are extended to July 15, 2020. Filing and payment deadline FAQ.
Employee Retention Credit
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. You can get immediate access to the credit by reducing the employment tax deposits you are otherwise required to make. Also, if your employment tax deposits are not enough to cover the credit, you may get an advance payment from the IRS. More details here.
Paid Leave Tax Credits for Small Businesses
The Families First Coronavirus Response Act gives all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form to be released soon.
Economic Impact Payments for Individuals
U.S. citizens, permanent residents, and resident aliens are likely eligible for an Economic Impact Payment if they have a valid Social Security number, are not be claimed as a dependent by another taxpayer, and have an adjusted gross income under certain limits. Eligible individuals can use this chart for simple directions.
For more details and resources, visit the IRS Economic Impact Help Site