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SBA EXPRESS LOANS
SBA EXPRESS BRIDGE LOAN
Enables small businesses "who currently have a business relationship with an SBA Express Lender" (a bank) to access up to $25,000 quickly.
More money is available for the SBA to lend through "Express Loans," which are processed within a couple of business days, and more businesses should be eligible to qualify for them.
*Document prepared by & Copyright of
U.S. Travel Association
EXISTING SBA LOAN RELIEF
SBA will pay all principal, interest and
fees for six months on existing loans within 30 days of the law’s enactment. The plan also applies to new
borrowers who take out new 7(a) loans within six months of the Act being signed into law.
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
The tax payment deadline has been extended from April 15 to July 15
The employer portion of FICA taxes, half of SECA taxes, & both employer and employee portions of Railroad Retirement taxes can be deferred through the end of 2020. Half of the deferred amount is due at the end of 2021, the other at the end of 2022.
Businesses receiving assistance via the Paycheck Protection Program are not eligible for the payroll tax deferrals.
The EMPLOYEE RETENTION CREDIT
Refundable tax credit for 50 percent (maximum of $10,000/employee) of qualifying wages paid by an eligible employer (whose business has been financially impacted by the economic effects of the coronavirus pandemic).
Qualifying wages are:
Paid between Mar. 13 to Dec 31, 2020
Dependent on Avg.# of Employees throughout entire year 2020:
Qualified wages include the employer’s ("properly allocable") qualified health plan expenses
A business which has been granted a Paycheck Protection Program / Business Interruption Loan is INELIGIBLE for this tax credit
<101 employees= wages paid 03/13-12/31
>100 employees= wages paid 03/13-12/31 to employees who DID NOT WORK but were kept on payroll or given paid leave
The FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA) CREDIT
Refundable tax credit that reimburses employers (w/<500 employees), dollar-for-dollar, for the cost of providing paid (coronavirus-related) sick and family leave
Self-employed persons may also qualify; specific calculation procedures are provided by the IRS for determining the credit amount in these cases
* Note that, as is always true, the same expense cannot
be applied towards more than one credit or deduction.
PRIOR YEAR CORPORATE AMT REFUNDABLE CREDIT
Allows companies to claim a refund now to obtain additional cash flow
NET OPERATING LOSS DEDUCTION
Allows businesses to fully carry back net operating losses occurring in 2018, 2019, or 2020 to the previous 5 years (return amendments will be necessary to take advantage of this; talk to your accountant about how to make the most of it.
Allows pass-through businesses and
sole proprietors to retroactively turn off the excess active business loss limitation rule implemented with Tax Cuts and Jobs Act (TCJA) by amending the provision to apply to tax years beginning after
Dec 31, 2020 (rather than Dec 31, 2017)
CORPORATE INTEREST DEDUCTION
Temporarily increases the cap on the business interest expense deduction (from 30% to 50% of earnings before interest, income, taxes, depreciation and amortization) for the 2019 and 2020 tax year
Taxpayers may elect to use 2019 income numbers for purposes of computing 2020 interest deductibility limitation.
Allows restaurants and retail stores to fully expense the cost of interior building improvements in the year the cost occurs, rather than over time through a depreciation schedule.
Applies retroactively to Dec 22, 2019, providing billions of dollars of tax refunds to restaurants and other retailers that have improved their establishments over the last several years.
Increases the 10% limitation to 25% of taxable income
EXCHANGE STABILIZATION FUND
The CARES Act provides (at least) $454 billion to the Treasury Department to back 'various forms of assistance' provided by the Federal Reserve to lenders and eligible businesses, states, and municipalities.
The Treasury Department & Federal Reserve have broad discretion in how the financial assistance will be provided—which has yet to be decided.
Eligibility is broadly defined (and includes any business created in the U.S. where a majority of employees are in the US and which has not otherwise received adequate economic relief through other programs in the CARES Act).
However, there are no requirements for the Treasury or Federal Reserve to actually establish programs or facilities for which all eligible entities qualify.
It is therefore unknown whether or not this portion of the CARES Act money will ultimately be used to assist the American Citizenry with this crisis.
DEBT RLIEF EXISTING SBA
RELIEF VIA TAX CHANGES
EXCHANGE STABILIZTION FUND
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