COVID-19 Resources

As part of the new stimulus bill, Congress passed legislation that includes additional Paycheck Protection Program (PPP) funding and important PPP programmatic changes. Signed by President Trump on December 27, additional PPP funding will be made available for small businesses who previously received a PPP loan and would be eligible for a “second draw,” as well as those small businesses that did not receive an initial PPP loan.

• Second Draw Loans for Existing PPP Recipients: The legislation creates a PPP loan called, “PPP Second Draw,” loan for small businesses that meet certain eligibility requirements, that reportedly include the following criteria:
  • Employ not more than 300 employees
  • Have used or will use the full amount of first PPP loan
  • Demonstrate at least 25 percent reduction in gross receipts in one quarter in 2020 in comparison to that same quarter in 2019 (Example: 2nd Quarter 2019 vs. 2nd Quarter 2020 gross receipts)
  • PPP Second Draw Loans cannot be greater than $2 million
• New PPP Borrowers: If you are a small business that has not applied for PPP funds, the legislation allows these small businesses to apply

Loans for this program are being approved quickly therefore, the pool of available money will soon be allocated. If you have an interest in one of these loans, please apply as soon as possible.

You will need the following:

• Business financial statements for 2017- 2018
• YTD – P&Ls and cash flow statement
• Tax Returns for 2017 – 2018 (business & personal)
• Copy of W9
• Copy of the articles of entity
• Sales and revenues (GM) before events started – then at a point in the event.
• Being able to show – I have dropped __% in sales and __% in revenues in __ days.
• Personal financial statement with net worth
• Personal credit report – with credit score
• Most recent bank statement – corporate/business
• Narrative (download sample)

Important notes regarding these loans:

• This could take about 10 hours of work.
• Make sure you all your materials together when you submit – do not submit it in pieces but as a completed package.
• Complete all forms, narrative, and all financials – for all 20% owners and above.
• Send a current year – 2020 – P&L for the 6 weeks (to show sales/revenues) before statewide shutdown and include a cash flow statement.
• The narrative is important – follow and answer the key things requested

How much to ask for: figure working capital for 3 months – or the $100,000 – whichever is the lesser. Do not inflate. If you want to keep it simple, just use payroll for 3 months.

The CARES Act expanded the eligibility for collection of unemployment to the self-employed which include:

• S Corporation Shareholders
• Partners engaged in active business (not rentals)
• Sole Proprietors

This will be administered by state.  Link for more info

Finally, the following message is from the Fraud department at the IRS.  There is a significant increase in scams as it relates to criminals trying to gather information needed for the stimulus payments.

What are they seeing?

As the media has reported, the goal with the stimulus is to issue as many of those payments via direct deposit and use tax information from 2019 or 2018.  They are seeing phone calls, text messages, and e-mails phishing for this information not only to individual citizens, but a large uptick in preparers being targeted.

The messaging includes variations of language such as “in order to receive your/your client’s stimulus payment via direct deposit, we need you to confirm the banking information” and they are gathering that information via telephone or directing victims to click on a link that takes them to a website where they enter their banking information.

Communication information:  Anything you can do to help spread the word that the IRS will not call, text, or email you to verify your banking information for stimulus payments would be helpful.

Updated 12/28/20

This page will continue to be updated as new information is released.