Updated: Aug 5, 2020
Our latest update focuses on these three acronyms that have entered into common parlance. These three federal government programs are pieces of the sweeping federal Coronavirus response legislation that has taken shape over the past month and continues to evolve. Here are some updates from the Cobalt Compliance and Advisory Services team, and what we're doing to help you respond.
Paycheck Protection Program Loans ("PPP Loans")
As I'm sure you've all heard, the SBA announced late last week that the PPP Loan program had exhausted its available funding ($349 billion), but that the legislature would be working to pass more funding for this important program for small businesses.
We've heard from many of our employer and self-employed clients that they have applied for the PPP Loan program, and several have been approved and funded. We have also heard that several clients who applied early on, and whose applications were in progress, were actually approved and allocated by the SBA before the funding cap was reached and are on-track to receive funding this week.
We're happy to assist our clients with "administration" of these loans, making sure that we're keeping appropriate records so that you can apply for the loan forgiveness after the 8-week covered expense period, developing a strategy to maximize the forgiveness, and applying for the forgiveness from your bank. The attached Service Proposal outlines how we'll be doing this, the timing (throughout the 8-week period after you receive PPP funds), and our fees for providing this service. Please review, complete, and return this to us if you'd like to engage us to provide this service for you. If you have any questions, or would like to discuss whether this is a good fit for you, please let us know.
Economic Injury Disaster Loans ("EIDLs")
This loan program through the SBA has also reportedly hit its funding cap, though applications are still being processed, and we have seen some clients get the EIDL Grant ($10k maximum, now based upon number of employees) and some have received EIDL approval. At this point, the SBA has suspended additional EIDL applications, but these will reopen if Congress approves additional funding. If you have EIDL questions, please let us know.
Economic Impact Payments ("EIPs")
This is the official term for the stimulus payments that most Americans should see in the next few weeks. The IRS started distributing direct deposits (where available) last week, and is expected to start the first round of paper checks this week. There are two tools available on the IRS Website to help with EIPs -- the "Get My Payment" tool, which lets you look up the status of your EIP and when you should expect to see it, as well as enter your bank account information if the IRS does not have it on file, and the "Non-Filers: Enter Payment Info Here" tool, which can be used by those who did not have a filing requirement for 2018 and 2019, so they can receive their EIPs. Some taxpayers (those making over $75k individual / $150k joint, those with ITINs, and dependents of others) will receive a reduced payment or no payment. In some cases, not filing a 2019 return right away may maximize your EIP. Please email us at firstname.lastname@example.org or give us a call if you'd like to discuss your EIP.
Pass Your Check PDX
Speaking of EIPs, we're excited to announce that our affiliated non-profit, the Iridium Foundation, has launched a new program -- Pass Your Check PDX is a way for those who receive EIPs to pass them on to members of the community in need -- specifically undocumented families who pay taxes, but who won't receive EIPs despite the fact that they might need them the most. These families are also excluded from most of the government-funded aid programs that are now available. We've developed a community-based system for identifying families in need and getting funds to them as quickly as possible. Whether or not you'll be getting an EIP, we encourage you to take stock of your situation and consider supporting this effort with a tax-deductible donation to the Iridium Foundation.
Our team is still moving full speed ahead on personal and business tax returns and keeping up with day-to-day bookkeeping and payroll needs, while working remotely. Thank you for your continued support and business, and please let us know if we can do anything for you.
From our family to yours, our best wishes to you -- we hope you're staying healthy, safe, and happy in this difficult time.