On 12/28/2020 the President signed the $900 billion Covid relief package passed by Congress on 12/21. Below are some of the major highlights of the legislation. Please click here for an article from the Michigan Association of CPA's with additional business and individual provisions of the new legislation.
The full amount is $600 per individual, $1,200 per couple, and $600 for children (under 17). It’s available for individuals with adjusted gross income at or below $75,000 ($112,500 for heads of household), and couples with adjusted gross income at or below $150,000. If they have children, they will receive an extra $600 per child. For those above this income level, their amount will be reduced by $5 for each $100 their AGI exceeds the above thresholds.
Additional $300/week of unemployment benefits until March 14, 2021.
Paycheck Protection Program (Round 2) and other PPP changes
The bill includes $267.5 billion for a second round of Paycheck Protection Program (PPP2) loans as well as $13.5 billion for Economic Injury Disaster Loans (EIDLs).
PPP Round 2 loans will be available to first-time qualified borrowers and to businesses that previously received a PPP loan.
Specifically, previous PPP recipients may apply for another loan of up to $2 million, provided they:
Have 300 or fewer employees.
Have used or will use the full amount of their first PPP loan.
Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
A Simplified Loan Forgiveness Application for loans under $150,000. Still requires certification from owner that they did the full loan forgiveness computation as required.
Covered expenses paid using PPP loan funds will be deductible to the taxpayer. This has been a very controversial point and Congress has now clarified that their intent was for these expenses to be deductible, which is a huge win for business taxpayers.
Repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount. Another big win for business taxpayers.
43184 Dequindre Rd. Ste. 203
Sterling Heights, MI 48314
PLW CPA can help you prepare your PPP Forgiveness Application - Contact Us Today
Bob Wexler, CPA
Patty Wexler, CPA
Stephanie Ventimiglia, CPA
Judi Rosso, CPA
New COVID Relief Package -- December 2020
The application for Round 2 of the PPP loan program is available on the SBA website click here to go to SBA.gov where you can view and download application. Please contact your lender to see when or if they will be participating in the new PPP loan round.
Certified Public Accountants
Coronavirus Relief Options - Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL)