Moore Financial Tips for Trying Times

Small Business Development Center Overview and Guide to the Economic Aid Act. This is an excellent resource for all small business owners!  

Small Business can get a second PPP but not EIDL loan  From: CNBC  by Greg Iacurci 01/15/21 KEY POINTs Small businesses that took a hit from the  coronavirus pandemic  will be able to draw a  second Paycheck Protection Program loan . But the same isn’t true for another popular Covid-era funding source for entrepreneurs. The Economic Injury Disaster Loan program offers 30-year fixed-rate loans that provide six months of capital to small businesses during the pandemic, to cover things like rent, utilities, debt payments or a continuation of health-care benefits. More from Personal Finance: Extra unemployment benefits won’t be available to some for weeks The Social Security retirement age could change Biden’s $400 unemployment boost would replace 86% of lost wages The Small Business Administration, which oversees the program, has issued more than 3.6 million disaster loans during the pandemic worth a total of $194 billion, according to federal data through November...

2nd round PPP lenders   Click on the above link to see lenders for the 2nd round of PPP.

From INC>COM JAN 14, 2021  NEWSLETTERS SUBSCRIBE CASH FLOW EVERYTHING YOU NEED TO APPLY FOR A SECOND-DRAW PPP LOAN By: Brit Morse   After relaunching the   Paycheck Protection Program   to select lenders on January 11, today is the first day that second-draw PPP borrowers--that is, those who've already exhausted a first PPP loan--will get another shot at the refundable loan program aimed at struggling small businesses.  While businesses will have access to about $284 billion in program funds this time around, the money could go quickly. The first $349 billion loan program provided under the Cares Act  ran out in a mere two weeks  after it opened in April 2020. While there were many reasons why a business might have been shut out of round one, one mistake some companies made was heading to their lender unprepared.  Besides filling out the  second-draw PPP borrower application form , here are a few things t...

SBA to Reopen PPP    "THE HILL"  BY  SYLVAN LANE  -  01/13/21 The Small Business Administration (SBA) on Friday will begin accepting applications for the second round of Paycheck Protection Program (PPP) loans, the agency announced Wednesday. PPP-eligible lenders with less than $1 billion in assets can begin sending loans to the SBA for approval Friday, and the program will reopen to lenders of all sizes Tuesday, the agency said. The head start for smaller lenders  is intended  to ensure that smaller businesses can obtain PPP loans after many were unable to do so during the first round of disbursement in 2020. President Trump  in December signed a bipartisan coronavirus relief bill allocating another $284 billion for the PPP, which offers loans to small businesses that can be entirely forgiven if used to retain workers and cover basic operating expenses. The SBA has issued 4.9 million PPP loans since the program opened in April and has...

 From "Journal of Accountancy":  https://www.journalofaccountancy.com/news/2021/jan/sba-treasury-issue-ppp2-guidance.html NEWS MANAGEMENT ACCOUNTING New PPP guidance issued by SBA, Treasury By Jeff Drew January 7, 2021 Updated:  January 8, 2021 RELATED January 9, 2021 PPP application forms released January 8, 2021 Date set for limited PPP reopening December 27, 2020 COVID-19 relief bill addresses key PPP issues TOPICS COVID-19 Paycheck Protection Program Management Accounting The U.S. Small Business Administration (SBA) and Treasury issued guidance Wednesday night for the reconstituted Paycheck Protection Program (PPP). The guidance included two interim final rules (IFRs). The  82-page IFR  “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended” consolidates the rules for PPP forgivable loans for first-time borrowers and outlines changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260. The...

  The is nothing to do regarding the tax deferral executive order, at present. Until there is direction from the government how employers are to implement the order, keep withholding and remitting Social Security and Medicare taxes. The order's beginning date is not until Sept 1.  The order could be challenged in court.  As written, it is possible the deferral will be optional.  There simply is not enough information known at present to be certain. Remember, the order is a tax "deferral".  At some point, unless there is a law change, the money will be owed by both the employee and the employer.   There is a seemingly reasonable opinion that barring ruling waiving the tax, many employees will choose NOT to defer to avoid a hefty tax bill Jan 1, 2021 (when the deferral, as written, expires).   Thanks to Medlin Payroll Software for the concise explanation of the executive order.

USA Today Money June 20, 2020 Kelly Tyko More Americans are eligible to withdraw money from their retirement plans if they have been affected by COVID-19 , according to the IRS. The Internal Revenue Service announced Friday that it has expanded eligibility to "take into account additional factors such as reductions in pay, rescissions of job offers, and delayed start dates." The updated criteria, part of the CARES Act, also allows spouses or household members to take these distributions if someone in the home was affected. The Coronavirus Aid, Relief, and Economic Security Act has made it easier for Americans struggling with economic hardship from the coronavirus pandemic to withdraw money from their retirement accounts. The act allows investors of any age to withdraw as much as $100,000 from retirement accounts including 401(k) plans and individual retirement accounts this year without paying an early withdrawal penalty of 10%. They can avoid taxes on the withdrawal if the...

Forbes June 21, 2020 Alan Gassman PPP borrowers and their advisors are scrambling to determine how to manage their businesses and expenses to best facilitate loan forgiveness to benefit their businesses and employees. These two objectives are sometimes at odds, and the new 24-week testing period election, which most borrowers can meet, will have a powerful impact on business conduct.    Borrowers whose loans were assigned a loan number by the SBA on or before June 5 th can decide whether to elect to use an 8-week or a 24-week expenditure period in order to qualify for forgiveness. Borrowers whose loan numbers were assigned by the SBA after June 5 th must use a 24-week testing period. This decision does not need to be made by borrowers until the Application for Forgiveness is submitted, and most borrowers are well advised to consult with a CPA or other qualified advisor before turning in the forgiveness application. The Advantages of Using an...

CNBC Personal Finance June 24, 2020 Greg Iacurci Millions of small businesses have gotten federal aid to help weather the recession caused by the coronavirus pandemic. Despite that relief, many don’t expect to survive the crisis. Entrepreneurs who close their doors may be wondering if they’ll be on the hook if their business received a Paycheck Protection Program loan or Economic Injury Disaster Loan. “I think this will become one of the biggest issues [for loan recipients],” said Nick Oberheiden, a Dallas-based attorney. “I received the loan, I’m going out of business, now what happens to my loan liability?” Nearly a quarter of small businesses have considered closing their doors permanently because of Covid-19, and 12% are facing potential bankruptcy, according to a survey published last week by Small Business for America’s Future. Here’s a silver lining: PPP loans and disaster loans smaller than $25,000 have relatively favorable terms for borrowers, according to experts. And, in the...