The summarized information below is tailored for what we think our clients would find most helpful. It is not the full rules, regulations or terms. This summary information is NOT tax advice and may be missing relevant information to make informed decisions. It's meant to help guide you the appropriate details linked below only. Please consult the details in the related links or contact us to discuss your specifics before relying on the summary information. We may update this information as we learn more about the programs.
***updated regulations marked with *** based on the December 27, 2020 COVID relief Act
2 year term (5 year term for loans approved by SBA after 6/5/2020), 0.5% interest rate. No prepayment penalty. 1 PPP loan per entity.
Seasonal businesses may use average monthly payroll from 2/15/19 to 6/30/19
New businesses may use average payroll from 1/1/20 to 2/29/20
Loan Requirements:
Payroll Costs include:
Does NOT include
Additional uses of loan (may not be forgiven)
Additional program information HERE
Self-employed information HERE
Up to 24 weeks (previously 8 weeks which was updated 6/2020) of costs forgiven from loan balance (beginning on loan origination date) :
*in Force prior to 2/15/2020. Only 40% of the forgiven amount may be for non-payroll costs.
Deferral
Can get other SBA loans but can’t use same qualifying expenses for both
Must maintain payroll
EZ Loan Forgiveness Application
Low interest (less than 3.75%) up to $2m to pay for expenses that could have been met had the disaster not occurred including payroll and operating expenses
Request grant of up to $10k ($1k per employee) when applying for loan that does not need to be repaid.
Can be used for
***Grant money is not taxable***
***loan repayment deferred March 2021 as follows***
SBA will cover loan payments (Principal & Interest) for 6 months
(Does Not include PPP loans)
***Forgiven principal is not taxable***
Refundable Payroll Tax Credit through 12/31/2020 (***extended until June 30, 2021***)
Refundable payroll tax credit for 50% of wages paid (including health benefits) for the first $10k in wages per employee
***Credit increased to 70% with December 2020 bill***
Employers that have been fully or partially suspended as a result of government order limiting commerce, travel or group meetings
OR
Experienced >50% reduction in quarterly receipts year over year
***updated to 20% reduction in quarterly receipts with December 2020 bill***
Employers with less than 500 employees must provide up to 2 weeks paid leave to employees. May be a hardship exemption for businesses with fewer than 50 employees for school closings or childcare unavailability if it could jeopardize business as a going concern.
Qualifying reasons:
Employee information posters required to be posted: click HERE
Employer Information: click HERE
FAQs: click HERE
Full credit for wages paid plus cost to maintain health insurance.
Credit is applied against future federal payroll taxes and payments. Can also request advance from IRS.
***UPDATE DECEMBER 2020***
Voluntary leave extended to 3/31/2021
Mandatory leave ends 12/31/2020
Ability to take losses from 2018, 2019 or 2020 and amend earlier returns to take advantage of a loss carry back for up to 5 years
***added*** 100% deduction of business meals in 2021 and 2022 instead of the prior 50% deduction
Grants up to $15,000 for eligible RI businesses impacted by COVID.
Amounts vary based on number of employees. Must have at least 1 employee plus the owner and less than 20 (no cap for restaurant and caterers).
Must be able to show revenue declined by more than 50% in eligible industries (or 30% in industries listed as "severely impacted")
Additional Requirements and details available HERE
Official State Announcement HERE