[Newsletter sent to Thrive\u00a0 clients 4\/20\/2020]<\/p>\n
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There are many updates on both state and federal relief programs \u2013 more than I can include in any newsletter.\u00a0 Below I cover information that relates to the most common questions we are receiving and information that is new and\/or different from what was previously released (and therefore is a correction to prior information provided).<\/p>\n
If you are a current client and unable to find the answer you need using the resources below (& in prior newsletters), please email admin@thrivebusinessgroup.com<\/a> and we will do our best to answer your questions.<\/p>\n Thank you,<\/p>\n Siobhan<\/p>\n <\/p>\n Washington state has opened for unemployment claims for self-employed individuals under the Pandemic Unemployment Assistance (PUA) program. Unfortunately, we have no additional information beyond what is published on the ESD website. As a result, we are unable to answer detailed questions about if you qualify, how much you qualify for, when you will receive benefits, etc.<\/p>\n All information about the PUA program and the application process is available online here:\u00a0 https:\/\/www.esd.wa.gov\/unemployment\/self-employed<\/a><\/p>\n <\/p>\n The SBA has been so overwhelmed by applications to these programs that the SBA has shut down all new applications.\u00a0 Although congress is in negotiations for additional funding & additional Covid-19 relief, as of writing this newsletter, no new laws have been passed.<\/p>\n PPP Loan<\/strong>:\u00a0 If you have questions on this loan, please contact your business banking lender. They are in the best position to answer your detailed questions.<\/p>\n EIDL Loan \/ Grant<\/strong>: This program had $10 Billion in funding.\u00a0 The SBA received over 4 million applicants requesting $400 Billion in funding. Only about 24,000 of those applications have been processed. This gives you an idea of the degree to which these relief programs are overwhelmed and underfunded. As a result, even if more funding is approved, I would be surprised if this program is re-opened for applications.<\/p>\n When this program was first released, it included a forgivable advance of $10,000 (acting like a grant). The SBA has now announced that this advance will be limited to $1,000 per employee up to $10,000 maximum.\u00a0 They have not specified how this will apply to self-employed individuals or rental property owners.<\/p>\n My best guess is that self-employed individuals will count as 1 employee and receive $1,000 and that rental property owners will receive nothing. But that\u2019s just a guess, the SBA will make their own determination of how to implement their decision.<\/p>\n Please note, if you were one of the first applicants to the EIDL program, your application number will start with a \u201c2\u201d and your application will not<\/u> be processed and you must resubmit your application if the SBA re-opens their application system.<\/p>\n Here\u2019s why: when the EIDL program was first released, it included a $10,000 forgivable advance for all applicants.\u00a0 Then, the SBA was overwhelmed with applicants so they decided that they would only issue advances of $1,000 per employee up to $10,000.\u00a0 However, their application form did not ask how many employees the applicant had.<\/p>\n They updated their system to ask for the number of employees and then started issuing application numbers with a \u201c3\u201d at the beginning.\u00a0 All prior applications started with a \u201c2\u201d and will not be processed.\u00a0 The SBA has indicated that these applicants will need to re-apply (if\/when their system is reopened).<\/p>\n You can monitor the EIDL application system here: https:\/\/www.sba.gov\/funding-programs\/loans\/coronavirus-relief-options\/economic-injury-disaster-loan-emergency-advance<\/a><\/p>\n <\/p>\n The IRS has two tools available to assist you with stimulus payment issues, both located here: https:\/\/www.irs.gov\/coronavirus\/economic-impact-payments<\/a><\/p>\n If you want to check on your payment status, confirm if it\u2019s direct deposit or check, or provide direct deposit info (in some cases), you can do so using the \u201cget your payment\u201d tool.<\/p>\n If you have not been required to file a tax return in the last two years, you can provide the IRS your info to receive your payment using the \u201cnon-filers\u201d tool.<\/p>\n A few other updates recently published by the IRS:<\/p>\n In a previous newsletter, I explained that the stimulus payment is an advanced payment of a new tax credit on the 2020 tax return.\u00a0 In the past, advanced payments of credits have been subject to a reconciliation \u2013 any extra received is repaid and any underpayments are added as a refund.<\/p>\n However, the IRS has now stated that they are treating this advanced credit payment differently. They will not<\/u> require any repayment but they will allow claims of additional credit if applicable (for example if a child is born in 2020).<\/p>\n If the IRS has your bank account info on file from a previous direct deposit of a refund or for direct deposit of federal benefits (such as social security income), then they will use that bank account for your payment.\u00a0 (This is the same as previously reported.)<\/p>\n However, if they have your bank account info from you making a direct debit payment for your tax return, they will not<\/u> use that bank info.\u00a0 Instead, they will mail a check, or you can use the \u201cget your payment\u201d tool to provide your bank info.<\/p>\n <\/p>\n The IRS updated the due date for the Quarter 2 estimated tax payment to 7\/15\/2020.\u00a0 As a result, 2019 tax return payments, Quarter 1 and Quarter 2 estimated tax payments are all due on 7\/15\/2020.<\/p>\n <\/p>\n The Small Business Development Center (SBDC) is keeping a great list of relief programs with ongoing updates.\u00a0 I encourage you to monitor their resource page for additional programs and information: https:\/\/sbdc.wwu.edu\/business-continuity-resources<\/a><\/p>\n <\/p>\nUnemployment claims for self-employed<\/strong><\/h3>\n
SBA Loan programs (EIDL \/ PPP)<\/strong><\/h3>\n
Stimulus payments<\/strong><\/h3>\n
Estimated Tax Payments<\/strong><\/h3>\n
SBDC resource website<\/strong><\/h3>\n
Safe workplace guidelines<\/strong><\/h3>\n