economic stimulus package

It's here... well almost here, Congress has passed pandemic economic relief bill

Just before midnight last night Congress overwhelmingly passed legislation – the Consolidated Appropriations Act, 2021 – to both fund the continued regular running of the federal government and to provide additional economic help to both individuals and businesses affected by the current pandemic (https://docs.house.gov/billsthisweek/20201221/BILLS-116HR133SA-RCP-116-68.pdf). While the legislation has not been signed into law at the time of this writing, it is expected that the President will sign the Act.

The Act provides for a new round of Paycheck Protection Program (PPP) funding, makes Sec. 501(c)(6) not-for-profit organizations (Chambers of Commerce, trade associations, etc.) eligible for loans for the first time, offers businesses facing severe revenue reductions the opportunity to apply for a second loan and gives expanded PPP assistance to many hospitality businesses including hotels and restaurants.

Economic relief from Congress may be close, here are the details

At long last Congress appears to be nearing legislation that has a chance of passing and becoming law. The Emergency Coronavirus Relief Act of 2020 has a lot of parts to it — many of them moving parts. Of particular interest to most taxpayers and business owners is that of economic stimulus payments and another possible round for forgivable loans for businesses (Paycheck Protection Program round 2 or PPP2).

With the current political turmoil that exists, providing any odds for passage is impossible. However, in the meantime while we await passage we have prepared a recap of the Act for your reading pleasure or use as a sleeping aide. You can read our summary of the Emergency Coronavirus Relief Act of 2020 by clicking here.

One-Page Summary of the Paycheck Protection Program

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Paycheck Protection Program Summary

Based on the number of phone calls and emails we are receiving it is clear there is still much confusion about the Paycheck Protection Program loans. This emergency loan program was created by the CARES Act.

To help business owners better understand what the Paycheck Protection Program may offer we have prepared a one-page summary which can be had by clicking here.

There are many details to the calculation and, especially calculating the forgiveness portion of the loan, so be sure that you actually read the entire law and regulations for the program or seek professional assistance. If you have questions or need help the team at Scholl & Company is here for you. You can call us at (831) 758-5966 or email us at success@schollcpa.com.

CARES Act, First Look for Business

Late Wednesday, the US Senate voted unanimously to advance “Phase Three” as part of the economic relief effort for COVID-19 emergency. The legislation, entitled the “Coronavirus Aid, Relief, and Economic Security Act” (the CARES Act), follows intense negotiations over the last week. Its estimated $2+ trillion price includes: immediate cash relief for individual citizens; a broad lending program for small business; extraordinary public health spending to confront coronavirus; and, targeted relief for specific industries hit hard by the pandemic.

The CARES Act is 880 pages long, consisting of several different Divisions and Titles. We’re still digesting the complex legislation and remind you that it has not yet been signed into law. It still must get through the House of Representatives. Although not yet law, we believe it is important to for our clients to be at the front end of the opportunities and changes that may become law any day.

Tax Return Deadline Officially Postponed

This morning both President Trump and Secretary of Treasury Mnuchin have announced that both the tax return filing deadline and payment deadline will be moved forward to July 15, 2020. While automatic extensions of time to file have always been available, this move will allow some breathing room for many taxpayers. There will be no penalty for deferring your payment and no interest will accrue during this period.