The PPP Application has been extended into early August!
In an unexpected move, on June 30th, the Senate voted to pass a measure that would extend the application period for the paycheck protection program (PPP) into early August. The initial deadline to apply for the forgivable loan was scheduled to end on the same day but $129 billion was left unused. The measure was later approved by the House on July 1st and signed into law by the president on the 4th of July. As a result, we have another month to ensure small business owners and nonprofits have what they need to withstand the economic impact the coronavirus pandemic continues to have on operations.
The Small Business Administration’s program provides a forgivable loan to, in effect, cover the cost of two and a half months of payroll or net income. The program, which is administered through banks and other financial institutions, requires minimal documentation to apply and approved loans are forgivable to the extent employee staffing levels are maintained, expenditures are made within the required time frame, and funds are used for their intended purposes. It should be noted that these funds are available to small business (including independent contractors) and non profit organizations. This group includes barbers, beauticians, handy women, and caterers. ATS has assisted several clients with obtaining these funds and are currently supporting their loan forgiveness requests. If you need assistance or are unsure if this applies to you, please contact your ATS representative or send an email to email@example.com .
Last Call for Paycheck Protection Program Application
Paycheck Protection Program (PPP)
- Applicants may be eligible for loan amounts up to 2.5 times the average monthly payroll (including employee benefits).
- Loan payments may be deferred for 6 months. However, interest will continue to accrue.
- Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. All loans have an interest rate of 1%.
- Applications will be processed through banks
- Banks are giving preference to existing account holders
PPP Loan Forgiveness
- 100 % of the PPP loan is forgivable (to the extent that employers maintain specified staffing and wage levels).
- Funds should be used for payroll costs and other qualified cost (at least 60% payroll)
- Loan proceeds must be spent during the 24-week period immediately following disbursement of the loan or by December 31, 2020, whichever is earlier
- If payroll is biweekly or more frequently, you may choose to begin the covered period on the first day of the first pay period following disbursement of the loan (“Alternative Payroll Covered Period”) for qualifying payroll costs only.
- Employers can apply for loan forgiveness through the lender.
If you have questions or concerns regarding the PPP or loan forgiveness, please contact us.
Other Reminders (Previously Shared)
Individual, Corporate (C-Corp), Estate, and Nonprofit Income Tax Returns are Due on July 15th!
Please ensure you have all required information to ATS by July 3rd. Submission after that date may result in late tax filings.
2nd Round of Economic Impact Payment (Stimulus Checks)?
The HEROES Act, which passed the house back in May, carries a provision for a second economic stimulus payment. The bill, however, is not expected to past in the senate.
- The house bill increased the amount paid to dependents from $500 to $1200
- The house bill also removes the age cap which initially disallowed payouts for dependents over 17
- The house bill includes rental and mortgage assistance, extends the unemployment supplement and student loan deferrals, and provides hazard pay to some essential workers.
- Some stimulus is expected, however there are ongoing debates related to how they will be determined and received. Additional information is expected early next week.
You may review the HEROES Act here:
Other Resources for Nonprofit Organizations and Businesses Impacted by Coronavirus
City of Indianapolis and United Way of Central Indiana Nonprofit Restart Program Grant:
Starting June 23rd, United Way of Central Indiana began accepting applications for the Nonprofit Restart Grant. The reimbursement grant will be awarded in amounts between $200-$5,000 to registered 501(c)(3)s located in Marion County Marion County for purchases of PPE, disinfectant products, and capital improvements that include, but are not limited to signage, air handling, partitioning for social distancing, and improvements for safe queuing. Learn more here .
City of Indianapolis and the Indy Chamber:
The Indy Chamber is accepting applications for Ready to Restart Grants. The reimbursement grant will award from $200-$5,000 to businesses registered in Marion County of 150 employees or less based on reimbursements for purchases of PPE, dividers, hand sanitizer stations, washable restaurant menus, and more. Learn more here
Previously Shared: Indy Chamber – Business Ownership Initiative:
The Indy Chamber/BOI has initiated Rapid Response Recovery Loans of up to $25K for small businesses. Find BOI’s checklist of what must be submitted to apply for the loans here . Smaller loan amounts will require less documentation. Interest rates are 4.25-7.5% and loan terms depend on the amount requested. If you are interested in discussing this further, please contact BOI at 317-464-2258 or firstname.lastname@example.org .
The Indy Chamber Rapid Response Hub is designed to offer up-to-date information, provide the ability to ask questions, and connect small business owners with resources. Please use the form available to ask any questions.
Non-Traditional Lending Options:
If the resources above are not useful and you are unable to obtain traditional bank financing, Bankable offers alternative funding options. They can lend between $500 to $250,000 at interest rates between 8-12%. Terms for these loans can range from 12 months to 10 years depending on the size of the request. Bankable can work with all companies except the following: religious, non profits (unless they are a non profit daycare), and house flippers/landlords. They indicated they can turn an application around in 24 hours or it can take up to 6 weeks, depending on the size of the request and the cooperation of the applicant. Bankable Website
Other Nonprofit Information:
Recognizing the impact of the COVID-19 pandemic, The Lilly Endowment is giving more time for organizations to prepare proposals for Enhancing Opportunity in Indianapolis , a $50 million initiative that seeks to help people in Marion County make progress toward economic self-sufficiency. The deadline has been moved from March 27 to April 17.
Additionally, Lilly Endowment has extended the deadline of its Charting the Future of Indiana Higher Education initiative . Eligible colleges and universities across Indiana have until April 28 to submit proposals (the earlier deadline was April 15).
Check with your business insurance company to determine if there is a possibility for a business interruption claim. Policies may cover losses, on a limited basis, if they include a clause known as ‘interruption by communicable disease’.” (See article )
Please note, these laws and related policies will continue to evolve in the coming weeks and are subject to change/clarification. Therefore, information contained within this communication is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant. Presentation of the information via the internet is not intended to create, and receipt does not constitute, an accountant-client relationship. ATS CPA & Consulting Services, Inc. specifically disclaims any liability for any direct, indirect, incidental, consequential or special damages arising out of or in any way connected with access to or use of this information.