Payroll Protection Program Loan Forgiveness

On May 15th, 2020, the Small Business Administration, in consultation with the U.S Department of Treasury, released information regarding the forgiveness of the Paycheck Protection Program (PPP). Which includes an application and detailed instructions.   The following information is to guide small business along with non-profits in Minnesota to assist in their PPP loan forgiveness. […]

Payroll Protection Program

The Small Business Administration’s Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.  Businesses can apply thru their existing SBA lender.  Consult with your local lender as to whether they are participating in the program.  All loan terms will be the same […]

Economic Injury Disaster Advance Loan

Small businesses can apply for an advance of up to $10,000 related to the Economic Injury Disaster Loan.  This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue related to COVID-19.  The following apply to this program. Small business with less than 500 employees (including sole proprietorship, independent […]

Economic Injury Disaster Loan Program

The Small Business Administration has low-interest federal disaster loans for working capital available for businesses suffering substantial economic injury as a result of COVID-19.  The following is a summary of the Economic Injury Disaster Loan Program. The Economic Injury Disaster Loans are up to $2 million in assistance. The loans can provide vital economic support […]

SBA Loan Programs

Three Small Business Administration emergency capital programs are available. Low interest, long term Economic Injury Disaster Loans – These loans are up to $2 million.  The first payment is deferred for 12 months.  The application is a simple online application through the web portral at www.sba.gov/disaster.  For additional information related to the Economic Injury Disaster […]

Relaxation of Business Interest Deduction Limit

The 2017 Tax Custs and Jobs Act (TCJA) generally limited the amount of business interest allowed as a deduction to 30% of adjusted taxable income (ATI).  The CARES Act generally allows businesses, unless they elect otherwise, to increase the interest limitation to 50% of ATI for 2019 and 2020, and to elect to use 2019 […]

Net Operating Loss Liberalizations

The 2017 Tax Cuts and Jobs Act limited NOLs arising after 2017 to 80% of taxable income and eliminated the ability to carry NOLs back to prior tax years.  For NOLs arising in tax years beginning before 2021, the CARES Act allows taxpayers to carryback 100% of NOLs to the prior five tax years, effectively […]

Delayed Payment of Employer Payroll Taxes

Taxpayers (including self-employed taxpayers) will be able to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022.  The deferral applies to the applicable employment taxes for the […]

HSA Relief and Non-prescription Medical Products

Health Savings Accounts (HSAs) have both advantages and disadvantages relative to Flexible Spending Accounts when paying for health expenses with untaxed dollars.  One disadvantage is that a qualifying HSA may not reimburse an account beneficiary for medical expenses until those expenses exceed the required deductible levels.  The IRS has announced that payments from an HSA […]

Exclusion for Employer Payments of Student Loans

An employee currently may exclude $5,250 from income for benefits from an employer-sponsored education assistance program.  The CARES Act expands the definition of expenses qualifying for the exclusion to include employer payments of student loan debt made before January 1, 2021.