The Economic Aid Act authorizes new PPP loans for first-time borrowers, as well as applications for a Second Draw PPP Loan for those that already received a loan last year. This alert addresses the requirements and issues for the self-employed and sole proprietors with no employees, who wish to apply for a Second Draw PPP Loan under the new law.
Requirements:
If you are self-employed/or a sole proprietor, with no W-2 employees, and you report income from your business on your personal tax return (Form 1040/Schedule C), and if you qualified for a First Draw PPP Loan and would continue to ...
The President signed new stimulus legislation into law on December 27, 2020. The new law, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260 (“Economic Aid Act”), authorizes new and additional PPP loans and modifies the CARES Act for this purpose. The Economic Aid Act authorizes funds of $284.5 billion for PPP loans, and which includes $35 billion for first-time borrowers. The United States Small Business Administration (SBA) and the United States Treasury also issued new guidance interpreting the new law.
The new SBA/Treasury guidance ...
Congress passed the Consolidated Appropriations Act, 2021 (the Act) on December 21, 2020. The Act, which is 5,593 pages, contains a number of stimulus measures designed to address the economic impact of the coronavirus crisis. While the bill has not become law as of the date of this blog, it is expected to be signed by the President quickly and then become law. Key provisions of the Act include:
- Under the CARES Act, expenses paid with Paycheck Protection Program (PPP) proceeds could not be deducted if the PPP loan was forgiven. The Act now permits taxpayers to deduct expenses paid with PPP ...
The SBA has now released broader information on borrowers who received loans under the Payroll Protection Program. The SBA’s release of this information was ordered by United States District Judge James E. Boasberg in a case filed against the SBA, WP Company LLC d/b/a The Washington Post, et al., v. U.S. Small Business Administration, Civil Action No. 20-1240 (JEB) and a related case, Center for Public Integrity v. U.S. Small Business Administration, Civil Action No. 20-1614 (JEB).
The SBA had previously released information for borrowers that received PPP loans of $150,000 or ...
A United States District Judge in Washington ordered the SBA to release the names and other information of all Paycheck Protection Loan borrowers. In WP Company LLC d/b/a The Washington Post, et al., v. U.S. Small Business Administration, Civil Action No. 20-1240 (JEB) and a related case, Center for Public Integrity v. U.S. Small Business Administration, Civil Action No. 20-1614 (JEB), United States District Judge James E. Boesberg issued a November 5, 2020 order requiring the SBA to release the names and other information for all PPP loan borrowers by November 19, 2020.
The SBA ...
On October 30, 2020, the U.S. Department of Labor (the “DOL”) released a Final Rule to “provide clear regulatory guideposts for fiduciaries of private-sector retirement and other employee benefit plans in light of recent trends involving environmental, social and governance (ESG) investing.” The Final Rule amended the regulations (29 C.F.R. §2550.404a-1; hereinafter referred to as the “Regulations”) enunciating fiduciary investment duties under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). This article will review the ...
A United States District Judge in Washington has ordered the SBA to now release the names and other information of all Paycheck Protection Loan borrowers. In WP Company LLC d/b/a The Washington Post, et al., v. U.S. Small Business Administration, Civil Action No. 20-1240 (JEB) and a related case, Center for Public Integrity v. U.S. Small Business Administration, Civil Action No. 20-1614 (JEB), United States District Judge James E. Boesberg issued a November 5, 2020 order requiring the SBA to release the names and other information for all PPP loan borrowers. Under the order, the SBA ...
On October 31, 2020, the SBA released new forms and related instructions requiring borrowers with PPP loans of $2 million or more to provide additional information related to their PPP loans. Titled “Loan Necessity Questionnaire”, the SBA released separate forms and instructions applicable to both for-profit and non-profit borrowers. The SBA explains that “the purpose of this form is to facilitate the collection of supplemental information that will be used by SBA loan reviewers to evaluate the good-faith certification that you made on your PPP Borrower Application.”
Among the many employee benefit deadlines extended due to the pandemic by joint action of the Department of Labor and the Internal Revenue Service are the deadlines for making a Cobra election and paying the Cobra premiums. For purposes of these deadlines, the COVID-19 “outbreak period” is disregarded. President Trump declared COVID-19 as a national emergency as of March 1, 2020, which is the beginning of the “outbreak period.” The national emergency will end when the President declares it ended. The end of the “outbreak period” is 60 days after the end of the national ...
Each municipality and county in South Carolina (a taxing jurisdiction) is authorized to impose a business license tax based on the gross income of a business that operates within its borders. Businesses operating in South Carolina have been faced with registration requirements, filing deadlines, and rate classes that vary by taxing jurisdiction. The South Carolina Business License Tax Standardization Act (the Act) was signed into law by the Governor on September 30, 2020, and seeks to simplify the burdens of complying with business license tax requirements. The majority of the ...