Recovery Update from Caldwell CPAs

While roads appear to be leading to a recovery for the tourism industry, we know the corner will not turn fast enough. Caldwell CPAs is committed to continuing to help our industry clients and friends get through this pandemic.

Please be aware of three opportunities that may help you navigate.

Should you need support in understanding how to apply for these programs and credit, please do not hesitate to reach out to us.  Contact Lisa Curtin at [email protected].

Payroll Protection Program (PPP)

The deadline to apply for a PPP loan, either PPP1 if you have not previously applied or PPP2, has been extended to May 31, 2021. More information about applying for a PPP loan can be found here: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program.

Employee Retention Credit (ERC)

ERC is a win for many and often misunderstood. As a business owner who retained employees, you most likely are eligible for this credit.  Understanding how the credit works can be complicated and Caldwell CPAs can help you determine your eligibility. The credit has been expanded and is now applicable to your 2021 payroll taxes, in addition to credits in 2020. Changes to the Employee Retention Credit for the first two calendar quarters of 2021, include:

• an increase in the maximum credit amount,
• the expansion of the category of employers that may be eligible to claim the credit,
• modifications to the gross receipts test,
• revisions to the definition of qualified wages, and
• new restrictions on the ability of eligible employers to request an advance payment of the credit.

Economic Injury Disaster Loans (EIDL)

The SBA is reaching out to select applicants who applied for an EIDL loan and were denied OR those who received a small advance or grant of less than $10,000 on their first application. The notification will arrive by email.

Businesses eligible for the Targeted EIDL Advance must meet ALL the following eligibility criteria:

• Located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. The SBA will map your business address to determine if you are in a low-income community when you submit your Targeted EIDL Advance application.
• Suffered economic loss greater than 30 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date.
• Must have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. However, agricultural enterprises, such as farmers and ranchers, are not eligible to receive the Targeted EIDL Advance.

There is no harm in applying for the advance. The SBA will deem your eligibility and if approved, will fund the advance of $10,000 or the gap between what you originally received and $10,000.

Courtesy of Caldwell CPAs.