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  • Yamirka Suyi

CORONAVIRUS UPDATE 04/01/2020

Find below a summary of the different provisions and resources available for you as a business owner Loans: 1. Florida Disaster Bridge Loan: a. Application is a little bit more complicated https://floridadisasterloan.org/ b. It is an actual loan application (Business have to qualify) c. Available amount up to 50k with a possible extension to 100k to qualified businesses d. 0% Interest for a year (loan expected to be re‐paid by then) e. 12% if loan goes after a year f. If another loan is granted like an SBA you will need to pay off this one first 2. SBA EDIL a. Actual Loan b. Easier to apply: . https://www.sba.gov/funding‐programs/disasterassistance? utm_medium=email&utm_source=govdelivery c. Up to 10 year term d. Documentation will need to be provided once a loan specialist is assigned e. You can apply to a 10k immediate disbursement which will be forgiven if the business does not qualify for the loan, SBA has up to 3 days to take a decision on who will qualify for this f. Interest at 3.75 % g. Loan proceeds can be used for anything h. Can’t use in conjunction with any other relief loan i. Can use with payroll credits j. Can apply direct with SBA k. Up to 30 year term l. Not forgivable 3. Paycheck Protection Program a. SBA 7(a) Loan b. It is a forgivable Loan if you follow all the details and apply for the correct loan c. Non‐recourse loan and not COD Income (in other words not taxable income on the forgiveness of the loan) d. Funds need to be used to pay payroll, utilities, rent, Interest on loans (mortgage) e. You need to show that you had payroll expense, which includes 1099s or contractors payments f. Amount is 2.5 times the amount of payroll g. You can’t use in conjunction with the Employee Retention Credit h. Must maintain the amounts of the expenses to qualify for 100% forgiveness of the loan i. Businesses have until 06/30 to restore laid off employees j. Must apply through a preferred vendor: https://sbacares.boefly.com/ k. Need to show economically affected by COVID‐19 l. Payments will be deferred 6‐ 12 months m. No prepayment penalty n. Can’t use in conjunction with payroll credits Payroll: 1. Credit for Paid Sick Leave Wages: a. Up to 80 hours (2 weeks) with a maximum of $511/day per qualified employee b. DO NOT SPREAD IT OVER MORE THAN TWO CONSECUTIVE WEEKS c. Credit = Wages paid while on sick leave + Tax Free Group Health cost of employee d. Take the credit with your payroll deposits e. If credit is larger than your deposit you will need to apply for a refund f. Keep the amounts of the credit for tax return because they will need to be included on Income g. Who is a qualified Employee: Employee is subject to quarantine related COVID ‐19 or is seeking medical diagnosed because of symptoms h. Business owner and relative qualify as employee for the credit 2. Credit for Family Sick Leave Wages: a. Up to 12 weeks with a maximum of $200 per day or $10,000 per qualified employee b. Credit = Wages paid while on family leave + Tax Free Group Health Cost of employee c. Take the credit with the payroll deposits d. If credit is larger apply for a refund e. Amounts will need to be included in Income f. Who is a qualified Employee: Employee is subject to quarantine related COVID ‐19, or is seeking medical diagnosed because of symptoms, or caring for an individual who is subject to quarantine, or caring for the employee’s child if school or childcare is not available g. Business owner and relative qualify as employee for the credit 3. Employee Retention Credit a. Up to $5,000 per employee for keeping employees if business was hit hard by the virus b. Not eligible if take SBA loans c. Business must be Trade/Business d. Refundable credit against employer’s portion of payroll taxes e. Reduced by other credits including R & D credits f. Hit hard = operation fully or partially suspended; gross receipts declined by greater than 50% compared to same quarter on Prior Year g. Health plan costs count as wages 4. No Doc Loan via Payroll Taxes a. 50% of employer portion of Social Security Taxes and/or SE Taxes b. Pay half by 12/31/2021 and the rest by 12/31/2022 c. Can’t use if receive forgiveness of PPP SBA LOAN NOLs: 1. You can amend tax returns if it makes sense for refunds if NOLs present on 2018, 2019 2. Carry back 5 years for refund 3. No 80% limit Qualified Improvement Property – COMMERCIAL INVESTORS: 1. BONUS DEPRECIATION ALLOWED ON: (This means full depreciation taken on the year Vs depreciation taken over 39 years) a. Qualified leasehold Improvements b. Qualified RESTAURANT Property c. Qualifies Retail Improvement property 2. Retroactive to 2018 and 2019 tax refunds 3. May want to amend for refund 4. Must be interior improvement on commercial property As always, we are here as a resource for our clients and community. Feel free to call or email us your questions. We will post some updates for self‐employed and individuals

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14848 Old 41Rd N, Suite 2, Naples, FL 34110

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