While not strictly tax related, these two SBA loan programs seem to go hand in hand with recent tax changes and I suspect tax clients will be asking if they haven't already (I know mine have).
"The Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDLs) are the first line of support. These loans aren’t new. They’ve always been available in the event of disaster. However, according to Alex Contreras, Director of Preparedness, Communication, & Coordination at the Office of Disaster Assistance for the SBA, this is the first time a virus or pandemic event has been defined as a disaster. " [Forbes]
So these loans can now even include an up to $10K advance that may not have to be repaid, "if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss. " [Forbes]. I think even landlords might qualify. But the big thing is whether one actually suffered a loss due to Covid-19. For example, in my solo tax practice, I can't really say I've suffered any financial loss so far -- no one has told me they can't pay my fee for preparing their return.
The other one, which is new, is the Paycheck Protection Program, part of CARES Act. This one is based on payroll actually paid, so if no employees, it doesn't apply.
There is now an on line application available for the EIDL.
https://www.sba.gov/page/coronavirus...loan-resources
I believe the above link contains some new stuff as of yesterday.
I don't have a specific question, other than asking others to share what they know, and/or what types of clients might be best suited to apply for which type of loan, if any.
"The Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDLs) are the first line of support. These loans aren’t new. They’ve always been available in the event of disaster. However, according to Alex Contreras, Director of Preparedness, Communication, & Coordination at the Office of Disaster Assistance for the SBA, this is the first time a virus or pandemic event has been defined as a disaster. " [Forbes]
So these loans can now even include an up to $10K advance that may not have to be repaid, "if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss. " [Forbes]. I think even landlords might qualify. But the big thing is whether one actually suffered a loss due to Covid-19. For example, in my solo tax practice, I can't really say I've suffered any financial loss so far -- no one has told me they can't pay my fee for preparing their return.
The other one, which is new, is the Paycheck Protection Program, part of CARES Act. This one is based on payroll actually paid, so if no employees, it doesn't apply.
There is now an on line application available for the EIDL.
https://www.sba.gov/page/coronavirus...loan-resources
I believe the above link contains some new stuff as of yesterday.
I don't have a specific question, other than asking others to share what they know, and/or what types of clients might be best suited to apply for which type of loan, if any.