[su_youtube url="https://youtu.be/9YpwWP4ONbs"]
We will be providing regular updates as things progress in the world of COVID-19. Please check back regularly to read the latest information.
In this 4/17/20 video, Taylor Gibson, Optima Office COO gives an update on the CARES Act and FFCRA for businesses affected by COVID-19 related issues. Taylor also covers the PPP loan, Disaster Loans, and Sick Leave.
What's Available to You
- EIDL– Disaster Loans up to $2 Million at 3.75% available through SBA
- Emergency Grant up to $10,000 – within 3 days
- Deferring payroll taxes – 50% until 12/31/21 and 50% due on 12/31/22
- Ability to carry back Net Operating Loss in 2018,2019 and 2020 for up to 5 years
- FFCRA - Sick leave for employees covered by tax credits
- Payroll Protection Plan Loan
Payroll Protection Plan (PPP) Next Steps if you have a Loan
- Open a separate bank account to monitor and control all funds received under PPP and to track their disbursement
- Create new accounts in payroll, rent, utilities etc. by adding PPP to the name so you can track expenditures that qualify for loan forgiveness
- Prepare a new 8-week forecast to ensure all expenditures are meeting guidelines set forth during the covered period under PPP
- Create new accounts in payroll under FFCRA as you are not allowed to include these in your pending PPP forgiveness calculation
PPP - Loan Forgiveness
- Amount forgiven is based on % of head count you retain compared to a prior period either 1/1/20-2/29/20 or 2/15/19-6/30/19
- If your head count drops more than 25% you lose all forgiveness
- Loan forgiveness applies to the 8 weeks during the covered period (beginning when you receive the loan) ending 6/30 which means loans after May 5th may not enjoy full forgiveness
- Up to 25% of loan proceeds can be spent on non-payroll items – rent, utilities
What you should do now
- Evaluate current operations and create a specific plan for how you and your employees can get the most from CARES & FFCRA
- Stay up to date with announcements as the environment is changing rapidly
- Make sure you have informed employees of all benefits afforded them under FFCRA
- Put new accounting procedures in place to track all COVID-19 related funding and disbursements
Material contained in this presentation is offered in summary form for informational purposes only. If you have questions about specific details of either CARES or FFCRA, please contact us here. https://optimaoffice.com/contact-optima/
