We are happy to announce that the 2020 Employee Retention Credit Refunds have started arriving for our clients. We began working on and filing these credits in Q1 this year and due to IRS backlogs the amended returns are just now being processed. As a reminder, these are refunds related to the Cares Act that were given to encourage employers to retain their employees during the pandemic. They are not loans or grants and you can use the funds for any business needs you have without the guidelines associated with PPP funds and/or EIDL proceeds. Please be on the lookout for an IRS notice that shares the refund amount. The letter states refunds will follow 4-6 weeks after the letter date but we’ve seen some checks come in sooner.
We have begun working on 2021 Q1 ERC refunds for clients that have requested our help. If you haven’t already spoken with us but would like assistance or would like to verify we have you in our work que please reach out to firstname.lastname@example.org.
Banks are now accepting PPP forgiveness processing. We’ve received the forgiveness application links for those that were processed through Blue Sky Bank. We are currently pulling together the necessary data to process these and anticipate them being done over the next 2-3 weeks. We will reach out to clients we supported with PPP applications in the next week to offer assistance.
The Economic Injury Disaster Loan has been a very helpful lending tool of the Cares Act. It has evolved over the last year and recently some significant changes have been made. Here are a few important updates:
- The loan limits will increase on October 8 from $500k to $2,000,000. Loan eligibility is based on 2019 financial data and there are new business and personal guarantees to consider.
- Loan proceeds can now be used to pay long term liability payments including federal debts.
- The payment deferment period has been extended to 24 months.
Here is the Press Release with additional information. https://www.sba.gov/article/2021/sep/09/sba-administrator-guzman-enhances-covid-economic-injury-disaster-loan-program-aid-small-businesses
This is the link to program details at the SBA website. https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl
We are happy to help answer your questions and be a resource with any of these programs.