COVID-19 and CARES ACT Updates

We hope this message finds you and your family safe, and looking forward to a less-stressful Easter weekend.  We wanted to give you a quick update on many of the big changes that happened this week.

Economic Injury Disaster Loan Grant

We are seeing that the $10,000 grant promised to all small businesses is now based on the number of employees with each employer getting $1000/employee with a max of $10,000.  They are saying funds will now be released in the next week or two. You can check the status of your grant by going to https://helloskip.com/loan-tracking.

Economic Injury Disaster Loan

The SBA has changed their tune about these loans being maxed out at $2 million and are now only offering up to $15,000.

The message that we received from the SBA, “Due to current appropriations for this program, the SBA will make initial loan disbursements for two months of working capital up to a maximum of $15,000 per applicant. This is in addition to the Grant of up to $10,000 each small business and non-profit is eligible to receive. By doing this, the SBA will ensure it is supporting the greatest number of applicants during this difficult time.”

Payroll Protection Program

We have seen several clients receive approval from their banks, but with very few actually receiving funds as of yet.  The clients that have had the most success in receiving funds have been working with local and regional banks. We are hopeful that many of you will start to receive the funds next week after the banks flayingly and frantically worked through the unclear direction provided by the SBA last Thursday.

The Paycheck Protection Program offers loans of up to $10 million at a 1% interest rate. These loans mature in two years, but the amount of the loan used for payroll and certain operating expenses in the first 8 weeks after loan disbursement may be forgiven if the business uses a minimum of 75% of the loan for payroll. Additional resources, such as information on debt relief and express bridge loans can be found at www.sba.gov/coronavirus.

Additional Income Tax Deadlines Extended

The IRS announced yesterday that it will be automatically extending any income tax filings and payments that were due 4/1-7/14 to 7/15.  The biggest impact we are seeing for clients is that 2nd quarter estimated tax payments which previously were due on 6/15 will now be due on 7/15.  If you have already had us set up your income tax payments to automatically come out before the 7/15 due date but you would like to change it, we encourage you to reach out to the IRS and CDR to have them change the dates.

IRS e-file Payment Services 24/7 at 1-888-353-4537

Colorado EFT/Electronic Payment Help: 303-205-8333

Economic Impact Payment

We are expecting people to start receiving these funds as early as next week, but it could take up to a month to receive your payment. Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return. 

If you do not file a tax return, receive social security benefits or railroad benefits, and cannot be claimed as a dependent, you can register here to make sure you receive your economic impact payment.

On a last and final note, there are a lot of scams going on out there, so please remember, the IRS will not call, text you, email you or contact you on social media  asking for personal or bank account information – even related to the economic impact payments.