March 26, 2020
To Our Clients and Friends –
Tax documents please!
Please submit your tax documents as soon as possible! We continue to work from home and want to prepare your tax returns now before the weather changes and all you will want to do is get outside, go to the movies or anything but your income taxes.
If you don’t currently have access to a scanner or proper postage, please be prepared to submit your information as soon as you are back at your office.
We appreciate you!
Tax deadlines are extended.
Families First Coronavirus Response Act
The Families First Coronavirus Response Act (FFCRA) becomes effective April 2, 2020 and expires on December 31, 2020.
The Act requires employers with less than 500 employees to provide two weeks of paid leave for employees who cannot work for certain reasons related to COVID-19.
The Act also requires employers with under 500 employees to extend paid Family Medical Leave Act (FMLA) to employees who need to care for their children due to school and child care closures related to COVID-19.
There are limited exceptions for certain small employers.
The FFCRA contains relief measures to employers, including reimbursement for paid leave, health insurance and payroll taxes.
You can read more about the Families First Coronavirus Response Act here: https://bit.ly/33KPcwg
The rules and requirements are complex and some of the guidance has yet to be issued.
SBA offering loans to small businesses
The Small Business Administration (SBA) has announced that it’s offering Economic Injury Disaster Loans under the Coronavirus Preparedness and Response Supplemental Appropriations Act, which was recently signed into law. Governor Pritzker has taken the necessary steps to make these loans available in Illinois
Economic Injury Disaster Loans offer up to $2 million in financial assistance to help small businesses mitigate their revenue losses. You could use the money to pay overhead costs such as utilities and rent, keep up with accounts payable and cover payroll.
For qualifying small businesses, the interest rate is 3.75%. Some nonprofits may also be eligible for this assistance. For them, the interest rate is 2.75%. The specific loan terms will vary according to each borrower’s ability to pay. The agency does say that it “offers loans with long-term repayments in order to keep payments affordable.”
Bear in mind that these loans are just one form of assistance offered by the SBA. Your small business may qualify for other loans, and there might be training programs that benefit your company.
What about the stimulus bill?
The federal emergency relief package was approved by the Senate but still needs to be approved by the House of Representatives. We’ll keep you posted!
Thank you, as always, for placing your confidence in Coleman & Associates!
We are collecting information about the Paycheck Protection Program in order to determine how we can best assist each of our clients with navigating the program and obtaining maximum loan forgiveness.
Over the weekend, the Small Business Administration (SBA) finally published the long-awaited Paycheck Protection Program (PPP) Loan Forgiveness Application.
Bankruptcy has become a possibility for many small businesses. The newly created Subchapter V of the U.S. bankruptcy code may offer a ray of hope for some companies.