Posted on April 27, 2021 by email@example.com in Don't Miss This
MN Taxation of PPP
Currently, the proposals for treatment of PPP tax forgiveness from the Minnesota House and Senate are different. The Senate tax bill provides full forgiveness on all PPP loans of any amount, while the House caps the forgiveness at $350,000 per loan. So, there would be tax liability on any PPP loan amounts over $350,000 under the House proposal and no liability under the Senate proposal.
The difference between the House and Senate provisions will be worked out in Conference Committee as the Session comes to a close. We’ll keep you posted.
Tax Credits for Vaccine PTO
Last week, President Biden announced tax credits for certain businesses that pay employees who take time off to get COVID-19 shots, a new effort to involve corporate America in his vaccination campaign.
"I'm calling on every employer, large and small, in every state to give employees the time off they need with pay to get vaccinated," the Democratic president said.
The tax credits, provided for by the American Rescue Plan, apply to businesses with fewer than 500 employees and enable employees to get vaccinated and recover from after-effects of vaccination, among other purposes. For additional information, please consult this snapshot from the Department of the Treasury.
In case you missed it, on March 30, President Biden signed into law the two-month extension to apply for a Paycheck Protection Program (PPP) loan. As a refresher, the legislation extends PPP through May 31, allowing businesses more time to pursue a second PPP loan. Further, if eligible organizations apply by May 31, the Small Business Administration will permit lenders an additional 30 days to process and approve any outstanding applications.
Eligibility criteria for a second PPP loan are as follows:
The maximum loan amount of a second PPP loan is two-and-a-half times the average monthly 2019 or 2020 payroll costs, up to $2 million.
New EIDL Loans Announced
The U.S. Small Business Administration launched a new round of Economic Injury Disaster Loan (EIDL) assistance – called Supplemental Targeted Advances – on April 22, 2021 that will provide $5 billion in additional assistance to 1 million small businesses and nonprofit organizations that have been most severely affected by the economic effects of the COVID-19 pandemic. The Supplemental Targeted Advance program is the latest SBA relief program to launch as part of the American Rescue Plan Act on March 11, 2021.
Businesses must meet all of the following eligibility criteria:
This additional relief to the smallest and hardest hit businesses builds on Administrator Guzman’s April 6 action to significantly increase the maximum loan amounts for COVID-19 EIDL assistance from 6 months of working capital with a maximum of $150,000 up to 24 months of working capital and a maximum of $500,000. SBA also announced on March 12 that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to provide more time for businesses to build back.
Effective April 22, the SBA modified the Targeted EIDL Advance application process to determine if businesses also qualify for the additional $5,000 Supplemental Targeted Advance. SBA will contact eligible business entities to apply and applications will be processed on a first-come, first-served basis. To qualify for the Supplemental Targeted Advance, an eligible business entity must be in a low-income community, suffered greater than 50 percent economic loss, and have 10 or fewer employees.
For details about the Targeted EIDL Advance and Supplemental Targeted Advance program, please click here.
Hope to See You on May 20th!
After what has been a long and lonely year dealing with COVID-related disruption, we look forward to bringing the industry back together for the AASP-MN Leadership Conference. Safety protocols will be in place so everyone can feel comfortable attending.
We have two great, nationally-recognized keynote speakers, roundtable discussions/workshop on ADAS and the always-popular happy hour/vendor showcase to close the day. All at a new venue – the Nicollet Island Pavilion. Plus, three virtual breakout sessions that can be viewed May 10 – June 10th, with follow-up “live” Q & A sessions scheduled for each.
Please register today and join us!