Florida storm victims eligible for tax relief can take advantage of extended deadlines until August 15 instead of the original April 18 deadline.
Florida Storm victims now have until August 15, 2023, to file…
The ‘Coronavirus Aid, Relief, and Economic Security’ package approved last night by the Senate went into discussion in the ‘House of Representatives,’ where it is expected to be approved Friday without changes if the President signs without delay.
The benefits should be implemented in a few weeks.
This initial summary of measures refers to aspects directly related to financing small businesses. We will be sending you more information about this and many other resources established in this relief package, which encompasses more than 800 pages.
INCREASED ELIGIBILITY FOR CERTAIN SMALL BUSINESSES AND ORGANIZATIONS.
(i) IN GENERAL: During the covered period, in addition to small business concerns, any business concern, nonprofit organization, veterans organization, or Tribal business concern described in section 31(b)(2)(C) shall be eligible to receive a covered loan if the business concern, nonprofit organization, veterans organization, or Tribal business concern employs not more than the greater of—
(I) 500 employees; or
(II) if applicable, the size standard in number of employees established by the Administration for the industry in which the business concern, nonprofit organization, veterans organization, or Tribal business concern operates.
(ii) INCLUSION OF SOLE PROPRIETORS, INDEPENDENT CONTRACTORS, AND ELIGIBLE SELF-EMPLOYED INDIVIDUALS.
(I) IN GENERAL.—During the covered period, individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed individuals shall be eligible to receive a covered loan.
(II) DOCUMENTATION that a shall be submitted:
– Payroll tax filings reported to the Internal Revenue Service,
– Forms 1099–MISC, and income and expenses from the sole proprietorship, as determined by the Administrator and the Secretary.
(iii) BUSINESS CONCERNS WITH MORE THAN ONE (1) PHYSICAL LOCATION.
During the covered period, any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a North American Industry Classification System code beginning with 72 at the time of disbursal shall be eligible to receive a covered loan.
SIX DIGIT NAICS CODES & TITLES
CODE / TITTLE
72 Accommodation and Food Services
721110 Hotels (except Casino Hotels) and Motels
721120 Casino Hotels
721191 Bed-and-Breakfast Inns
721199 All Other Traveler Accommodation
7212 RV (Recreational Vehicle) Parks and Recreational Camps
721211 RV (Recreational Vehicle) Parks and Campgrounds
721214 Recreational and Vacation Camps (except Campgrounds)
7213 Rooming and Boarding Houses, Dormitories, and Workers’ Camps
722310 Food Service Contractors
722330 Mobile Food Services
7224 Drinking places (alcoholic beverages)
7225 Restaurants and Other Eating places
722511 Full-Service Restaurants
722513 Limited Service Restaurants
722514 Cafeterias, Grill Buffets and Buffets
7225151 Snack and Nonalcoholic Beverage Bars
(iv) WAIVER OF AFFILIATION RULES.
During the covered period, the provisions applicable to affiliations under section 121.103 of title 13, Code of Federal Regulations, or any successor regulation, are waived with respect to eligibility for a covered loan for:
(I) Any business concern with not more than 500 employees that, as of the date on which the covered loan is disbursed, is assigned a North American Industry Classification System code beginning with 72;
(II) Any business concern operating as a franchise that is assigned a franchise identifier code by the Administration; and
(III) Any business concern that receives financial assistance from a company licensed under section 301 of 3 the Small Business Investment Act of 1958 (15 U.S.C. 681).
MAXIMUM LOAN AMOUNT (MATHEMATIC CALCULATION)
During the covered period, with respect to a covered loan, the maximum loan amount shall be the lesser of—
(i)(I) the sum of—
(aa) the product obtained by multiplying—
‘‘(AA) the average total monthly payments by the applicant for payroll costs incurred during the 1-year period before the date on which the loan is made, except that, in the case of an applicant that is seasonal employer, as determined by the Administrator, the average total monthly payments for payroll shall be for the 12-week period beginning February 15, 2019, or at the election of the eligible recipient, March 1, 2019, and ending June 30, 2019; by
(BB) 2.5; and
(bb) The outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on the date on which covered loans are made available to be refinanced under the covered loan; or
(II) If requested by an otherwise eligible recipient that was not in business during the period beginning on February 15, 2019 and ending on June 30, 2019, the sum of—
(aa) The product obtained by 9 multiplying—
(AA) The average total of 11 monthly payments by the applicant for payroll costs incurred during the period beginning on January 1, 2020 and ending on February 29, 2020; by
(BB) 2.5; and
(bb) The outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on the date on which covered loans are made available to be refinanced under 23 the covered loan; or (ii) $10,000,000.
ALLOWABLE USES OF COVERED LOANS.
IN GENERAL.—During the covered period, an eligible recipient may, in addition to the allowable uses of a loan made under this subsection, use the proceeds of the covered loan for—
(I) payroll costs;
(II) costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
(III) employee salaries, commissions, or similar compensations;
(IV) payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation);
(V) rent (including rent under a lease agreement);
(VI) utilities; and
(VII) interest on any other debt obligations that were incurred before the covered period.
(ii) DELEGATED AUTHORITY.
(I) IN GENERAL.—For purposes of making covered loans for the purposes described in clause (i), a lender approved to make loans under this subsection shall be deemed to have been delegated authority by the Administrator to make and approve covered loans, subject to the provisions of this paragraph.
(II) CONSIDERATIONS.—In evaluating the eligibility of a borrower for a covered loan with the terms described in this paragraph, a lender shall consider whether the borrower—
(aa) was in operation on February 15, 2020; and
(bb)(AA) had employees for whom the borrower paid salaries and payroll taxes; or (BB) paid independent contractors, as reported on a Form 1099–MISC.
Please feel free to contact us if you need any further information. Stay Safe.
Nestor L. Guillen
Founder, CEO Guillen Pujol CPAs
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