Bookmark this page for the latest updates and resources on COVID-19 and your small business.
Changes Coming to PPP
Both the House and Senate are working to make changes to the Paycheck Protection Program (PPP). Last night, the House passed the Paycheck Protection Program Flexibility Act. The act makes several key changes to the PPP, among them increasing the timeline to use funds from eight weeks to 24 weeks.
Read more: PPP Changes
More Guidance on PPP Loans and Forgiveness Released
The Treasury and U.S. Small Business Administration (SBA) issued additional guidance on the conditions for PPP loan forgiveness as well as loan review procedures, and borrower and lender responsibilities.
Read more: More PPP guidance
SBA Issues PPP Loan Forgiveness Instructions and Application
The U.S. Small Business Administration (SBA) released new guidance for Paycheck Protection Program (PPP) loan forgiveness. The instructions and application form are meant to help borrowers apply for forgiveness of their PPP loans and includes several measures to reduce compliance burdens and simplify the process for borrowers.
Read more: PPP loan forgiveness
SBA Deems PPP Loans under $2M Meet Good-Faith Certification
Borrowers applying for a Paycheck Protection Program (PPP) loan must certify in good faith that current economic uncertainty makes the loan necessary to continue business operations.
Any borrower that received PPP loans with an original principal amount of less than $2 million (along with its affiliates) will be deemed to have made the required good-faith certification. Read more
New Jersey Expands FLA with COVID-19 Protections
The new law provides employees forced to take time off to care for a family member during the COVID-19 outbreak with up to 12 weeks of unpaid family leave in a 24-month period without losing their jobs.
Read more: FLA and COVID-19
SBA Extends PPP Repayment to May 14
The SBA has extended the repayment deadline to May 14, 2020 for those subject to repayment. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.
Read more: PPP repayment
PPP Loan Forgiveness Not Reduced By Rejected Rehire Offers
If an employer offers to rehire an employee and the offer is declined, it will not have a negative effect on the Full Time Equivalent (FTE) reduction calculation for PPP loan forgiveness.
Read more: PPP and rehire offers
Families First Coronavirus Response Act (FFCRA) Update
Among the latest updates to the FFCRA: After a grace period, the DOL has officially ramped up its enforcement efforts but encourages employers and employees use their educational online tools to avoid violations. Additional guidance provided for small business exemptions, self-quarantine, and a timeline for paid sick leave.
Read more: FFCRA updates
SBA Issues More Regulations for PPP
Read more: New PPP regs
New Guidance and Infusion to the PPP
The Paycheck Protection Program and Health Care Enhancement bill passed last week gave a $310 billion replenishment to the PPP after all funds were depleted after less than two weeks. The U.S. Small Business Administration (SBA) issued another round of regulations on the program shortly before it resumed accepting applications from participating lenders on Monday.
Read more: PPP Infusion
Economic Impact Payments Update
The government has begun to process Economic Impact Payments. The payments are automatic for most taxpayers. The IRS has created a portal that allows recipients to check payment status, confirm payment type (direct deposit or check), enter bank account information to receive direct deposit, and update a mailing address.
Read more: Stimulus payments
NJEDA Small Business Emergency Assistance Loan
The New Jersey Economic Development Authority (NJEDA) has created a Small Business Emergency Loan Program to assist with the continued economic impact of COVID-19. This $10 million program will provide working no-to-low interest capital loans of up to $100,000 to businesses with less than $5 million in revenues.
Read more: NJEDA loans for small businesses
Changes to Paycheck Protection Program
The U.S. Small Business Administration (SBA) has issued interim regulations under the Paycheck Protection Program (PPP). These regulations have changed some aspects of the program, including for independent contractors, includable and excludable expenses, loan forgiveness, and more.
Read more: SBA interim regulations for PPP
Applications Open Now for NJEDA’s Grant Program
The application process for the NJEDA’s Small Business Emergency Assistance Grant Program opened Friday, April 3, at 9am. The program includes seven initiatives to help businesses cope with the impact the coronavirus outbreak has had on the economy.
Paycheck Protection Program
The latest coronavirus relief fund established new loans to help employers pay workers and cover other employment-related expenses during the coronavirus crisis. Lenders can start processing loan applications for small businesses and sole proprietors on April 3, 2020 and independent contractors and self-employed workers on April 10, 2020.
Read more: SBA-managed payroll protection loans
DOL Guidance on Families First Coronavirus Response Act
The Department of Labor recently issued additional regulations and guidance regarding the Emergency Family and Medical Leave Expansion Act (EFMLEA) portion of the legislation.
This guidance covered small business exemptions, office closures, intermittent leave, furloughs or reduced hours, and documentation.
Read more: FFCRA guidance for employers
CARES Act – Benefits for Individuals
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion economic relief plan, which includes direct payments to many Americans, expanded unemployment benefits, and additional benefits for individuals and families during these difficult times.
Read more: CARES aid for individuals and families
CARES Act – Small Business Update
The newly enacted CARES Act provides for forgivable small business loans. This article shares details about loan amounts, loan forgiveness, and then shares additional resources where small business owners can go for additional guidance.
Read more: CARES provides small business relief
Coronavirus Aid, Relief, and Economic Security (CARES) Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion economic relief plan which includes direct payments to Americans, strengthened unemployment insurance, loans to businesses, and increased health-care resources. The CARES Act was signed into law by President Trump on Friday, March 27, 2020.
We’ve summarized the aspects of the bill we believe most affect our clients. There are additional benefits to specific industries and states along with special provisions.
Read more: CARES Act summary
FFCRA – Important Updates [Now Effective April 1]
The Department of Labor has determined that the effective date for the (FFCRA) will be April 1, 2020. The text of the FFCRA states that the act takes effect “not later than 15 days after the date of enactment.” In our previous communication on the FFCRA Update, we stated the effective date would be April 2, 2020. The DOL has made it clear that this is not the case and that the law will be effective April 1, 2020.
Read more: Families First Coronavirus Response Act
New Jersey Small Business Grants & Loans
The New Jersey Economic Development Authority approved a package of initiatives that can be worth an estimated $75 million to $100 million to help businesses cope with the impact the coronavirus outbreak has had on the economy. All business owners who are interested in these and other programs should get documentation in order and begin to apply as soon as possible.
Read more: Grants & Loans for Small Business
KRS Working Remotely During COVID-19 Crisis
KRS is committed to the safety and health of our staff and clients. To that end, we are following the recommendations of the Bergen County Executive and Governor Murphy by adopting a contingency plan to move our office to work remotely effective March 19th.
Our team will continue to give you the same service you have come to expect from us no matter where we work. Although you should continue to call our office and email our staff as you have in the past, there are some suggestions that will assist in these efforts.
Read more: KRS business continuity plans
Families First Coronavirus Response Act
The Families First Coronavirus Response Act (H.R. 6201), which was signed into law on March 18, 2020, provides paid emergency family leave and paid sick leave for people affected by COVID-19. These provisions take effect April 1, 2020 and expire on December 31, 2020. They will not be applied retroactively, according to the Department of Labor.
Business owners may be considering applying for unemployment benefits because of a temporary suspension of business operations due to COVID-19.
If you are an owner of a corporation, or you own more than a five percent equitable or debt interest in the corporation, you will not be considered unemployed during your term of ownership. Your claim will not be valid and you will not receive benefits.
Read more: Business owners and unemployment benefits
Small Business Loans & Grants
Relief available for small businesses impacted by pandemic shutdowns
Small businesses are currently eligible to apply for an Economic Injury Disaster Loan (EIDL) through the Small Business Association (SBA) due to Coronavirus (COVID-19).
These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. SBA offers loans with long-term repayments to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. If a business has several entities, each entity should apply.
Read more: Current loans & grants offered
Fed, NJ & NY Officially Extend Tax Filing Deadline
The IRS has extended the federal filing deadline to July 15, 2020.
New Jersey and New York have also extended the filing deadline to July 15, 2020.
Read more: Extended tax deadlines
Impact on Your Tax Preparation and Deadlines
We know there is a lot of concern and uncertainty due to the Coronavirus (COVID-19). KRS has been closely monitoring the situation for several weeks. The health and safety of our employees and clients is a top priority as is ensuring all tax requirements are met by their respective deadlines. Our office remains open at this time. In the event we are required to close our office for a period of time, our operations will continue uninterrupted as our team is prepared and able to work remotely.
Read more: COVID-19 impact on tax prep