This extra long edition has two parts, one about what to do with the Stimulus or Economic Impact Payments, and the other is about tax-related laws and updates to help with tax planning for the rest of 2020. You can read Part I here.
Are you buckled down?
ECONOMIC IMPACT / STIMULUS PAYMENTS :
What BUSINESS OWNERS / SELF-EMPLOYED / INDEPENDENT CONTRACTOR need to know
There are two programs out there to help businesses.
The SBA Disaster Injury Loan Program (DIL) that is done directly with SBA Disaster Assistance.
This program was already in place before the current pandemic, and certainly applies to those in need. This is a $349 billion Paycheck Protection Program that is administered by local banks. The start date for application for small business owners is Friday, April 3rd / Friday, April 10th for independent contractor/ freelancer or people who are self-employed with no employees.
Although the program emphasizes keeping workers on payroll, it is open to the nearly 26 million solo entrepreneurs in the U.S. who pay themselves by distributions, too. It gives small businesses access to up to $10,000 in forgivable loans to cover payroll or wages they pay themselves over the eight weeks following the signing date.
The loans, which have a maximum size of $10 million, have a maturity of two years and an interest rate of 1%. Also we have a guide and checklist from US Chamber of Commerce that I have found clear and concise, to help you or someone you know who may appreciate this information. Please click here.
What CALIFORNIANS need to know
California is effectively providing a bridge loan to businesses that have collected sales taxes but not yet submitted them to the state.
The business doesn’t have to submit these taxes for one year. A new website is also to connect California workers with available jobs - Onwardca.org will match job seekers with employers during the pandemic. Especially those who are business owners, here is a list of resources by State Treasurer Fiona Ma