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Covid-19

COVID-19 Q&A

Economic Impact Payments (Recovery Rebate)

Q. Why haven’t I received my economic impact payment?

A. There could be a number of reasons. The primary reason seems to be that your direct deposit information was not available in your 2018 tax return (or 2019 if filed). That means that you are likely to receive a paper check. The first round of paper checks went out the week of April 20. But you can also enter your direct deposit information at www.irs.gov by selecting “Get My Payment.”

 

Q. Is there a way to track my payment or make changes to my direct deposit information?

A. Yes. The IRS has a portal where you can track your payment or make changes to your bank or mailing address which you can access here.

 

Q. When I try to track my payment, I get a message that says “We Cannot Determine Your Eligibility.” What does that mean?

A. The IRS wasn’t quite ready to take direct deposit information for taxpayers that didn’t have it in their 2018 or 2019 return. As of Friday. April 24, the IRS is ready to take that information. You can access it here.

 

Q. How can I figure out the size of my economic impact payment?

A. You can use this handy calculator. You can also view more detailed information on my previous webinar on this topic.

 

Q. Where can I get more information on the payment?

A. The IRS has developed a section dedicated to this topic.

Payroll Protection Program (PPP)

Q. What is the Payroll Protection Program?

A. Per the Small Business Administration (SBA), the Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. You can learn more by watching my previous webinar on this topic.

 

Q. Is it true that I won’t have to pay the loan back?

A. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

 

Q. Do payments to contractor on 1099s count towards the loan amount?

A. No. The Treasury Department answered this in a document you can access here.

 

Q. How can I apply for the loan?

A. We are seeing that utilizing your existing business banking relationship is the best way to access the program. However, I encourage you to work with a smaller bank if possible. The recent additional of funds allow set asides of $60 Billion to be administered by smaller banks. In theory, these funds should last longer.

 

Q. Are the funds going to run out before I have time to apply?

A. The initial $349 Billion approved for this program ran out on April 15th. However, Congress recently approved the addition of $310 Billion into the program.

 

Q. Should I apply at more than one place?

A. Probably not. Most lenders are asking that you have not applied anywhere else as a precondition for applying. However, it is important that you get in the shortest line available to you. During the first round, the highest throughput lender only processed just over 40,000 loans. The major banks have pretty long lines so a local bank that will take you as a new customer may be your best option.

 

Q. Where can I found more information on the Payroll Protection Program?

A. The Treasury Department has more information available here.

Economic Injury Disaster Loan (EIDL)

Q. What is the Economic Injury Disaster Loan Emergency Advance?

A. Per the Small Business Administration (SBA), in response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

 

Q. How much of the $10k advance will I receive?

A. Per an update from the SBA, “To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.”

 

Q. Is it true that I won’t have to pay the advance back?

A. That is correct. The $10k advance is essentially a grant and does not have to be paid back.

 

Q. Does applying for this advance prohibit me for applying for a Payroll Protection Program (PPP) loan?

A. No. You can apply for and receive both.

 

Q. Are the funds going to run out before I have time to apply?

A. The first $10 Billion for the EIDL Grant seems to have been exhausted. However, Congress recently authorized an additional $10 Billion.

 

Q. Where can I found more information on the Economic Injury Disaster Loan Emergency Advance?

A. The Small Business Administration has more information available here.

 

Q. Where can I go to apply for the Emergency Advance?

A. You can apply right here. Be sure to have your business gross receipts and cost of good sold (if applicable) for period February 2019 – January 2020. You will also need direct deposit information.

COVID-19 Specific Content

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