Everything continues to change from day-to-day as our government, systems, banking institutions and community resources are just trying to keep up with community concerns and demands. So, I wanted to give you a few more updates that could effect your business and personal budgets when it comes to the ever-changing SBA Loans/Grants.
A Timely Update on SBA Loans & Grants, COVID-19 PPP Loans, and More from Susie Jose at Carefree Bookkeeping – 15 April 2020
First Thing First – It’s REALLY important you understand the State of Minnesota did NOT change the estimated tax payment date for 1st Qtr estimated tax payers.
IF you are someone that pays estimated taxes you will need to log into the MN Dept of Rev website and make a estimated tax payment. It is better to make a $50.00 payment than not make any payment at all.
News about the EIDL and PPP SBA Loans
If you have not heard anything about your EIDL application approval yet, it’s because the SBA is trying to take both of your applications together and fund both programs with the amount you may qualify to receive. So, it’s not that you can get 5,000 from both EIDL and PPP, it’s that you can potentially qualify to receive $5,000 in total.
Additional Insight – Under the PPP Program
If you filed with your payroll, these are the rules as of today, April 15th
- 75% of the loan (Not Payroll) is to be used for payroll, and payroll only, in the 8 weeks (or 56 days) following the date you receive the money. No exceptions.
- 25% of the loan can be used for business property rental fees, business utilities, or business mortgage interest – Only. Again, no exceptions. Also, these allocations need to be paid in the 56 days following receipt of the money.
- If the money is NOT used for these 4 items you will get a penalty and will be paying the SBA back these authorized funds at a 1% interest rate. We do not have further information on what that penalty will be levied for, yet.
- You will need to show your SBA Funding Banker proof of how and when you allocated and spent the money.
For the Independent Contractors
When applying for available funding you need to use the information found on line 31 of your 2019 Schedule C to see if you qualify. Your taxes do not need to be filed at time of your application. There is no word yet on how you are to show how you spent the money.
No word yet on how to make part of the money a grant vs. loan.
What happens after disbursements?
When your loan or grant money is deposited into your checking account, Carefree Bookkeeping will be making a NEW account (category) titled COVID-19 Money for that account so we can help you better track how and when the funds are being used or distributed.
For more answers and insight
Be sure to tap into our blog at www.carefreebook.com, follow us on Facebook or LinkedIn for regular post updates, or ask to be a part of our growing email list so you don’t miss out on timely email updates.
I appreciate your patience with any potential delays in returning your calls, emails and text messages at this time while I (and my team) continue to try to give each you the time you need to get your questions answered.
~ Susie Jose