Your Morning Briefing, It’s Tax Day, or is it? Updates on Loans, Grants & Stimulus Funding…

15th April 2020

It was overcast this morning on the beach, but I was glad to get out to clear my head on #TaxDay?  Yes it’s April 15th but the only extensions we are filing are for our self-employed clients who operate in NYC (there was only a minimal extension of time to file the Unincorporated Income Tax Returns (UBT).

EIDL And PPP Applications and Funding

I am hearing from others in the accounting community that most businesses who have applied for the EIDL and PPP loans/grants have not received funding yet.  The PPP application process is set up so that once the bankers have received your paperwork they package it and then hit the SUBMIT button.  Once the application is submitted the SBA has committed to funding within 5 daysPlease be careful when compiling your information, please be sure that you submit all requested documents and please be patient.

Individual Stimulus Rebates

For those individuals who are hoping for the stimulus rebates who are concerned that their bank accounts on file with the IRS are incorrect or need to be updated, please be patient.  The IRS has promised it will shortly go live with a portal that will enable you to update your banking account information so that they have the account information for your direct deposit of the stimulus rebate ($1,200 per eligible individual $500 per eligible dependent).

Direct deposit: Use the Get My Payment application to let the IRS know your bank account information if they don’t have your direct deposit information and haven’t sent your payment.   https://www.irs.gov/coronavirus/get-my-payment

Link to check your status

There is a lots of activity on the site this morning so you may have to wait a bit… also, if you have not filed 2019, and had no direct deposit in 2018 the system spits back “we cannot determine your eligibility at this time”. 

Unemployment Insurance Benefits

For those individuals who are trying to apply for unemployment insurance, please do be patient and, if you are entitled to and need these funds KEEP TRYING.  Check the website to follow the rules about application dates. Be sure to prepare the necessary information before calling or logging onto the system (you have most of the pertinent information from your records and most recent pay-stub and W-2): employer name and tax identification number, work start date, last day worked, reason for furlough, etc.  If you are self-employed or freelance please check the website for your state’s complete instructions.  NYS DOL for Self-Employed Individuals.

Paycheck Protection Program for Self-Employed (Freelance) Individuals

New guidance from the SBA for those self-employed businesses who are looking to file for the Paycheck Protection Program (PPP) which allows you to apply for a low interest short term loan which may be eligible to convert to a loan (with proper, timely documentation).  Here is the link to their 19 page document…  and here is a link to the FAQ.  Once you review it you may find you need help deciphering it (you think?) We recommend that you:

  • estimate your potential loan amount to see if the effort is worth it (here is a quick check: net profit (up to $100,000, which you can find on your 2018 or 2019 Schedule C) divided by 12 months then multiply that amount by 2.5 THIS IS A QUICK ESTIMATE and NOT the actual calculation required for the application.
  • contact your bank to find out if they are supporting applications
  • send us an email if you need further clarification

At this point although you may have applied for the EIDL loan to grant program you will probably not receive any funding.

By now you all know that once I get back from my run, I check the New York Times Morning Briefing to see what’s going on with our country, our government, our economy, taxes and of course, the Coronavirus and most mornings share it with all of you… 

We know this is a difficult time for everyone, but please remember we are here to help. We can help you navigate the issues the virus and it’s impacts raises. If you have any questions or concerns at all, please don’t hesitate to get in touch.

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