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sbataxconsultants · 8 days

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Navigating the Waves: Current Trending Topics on US Taxation

Current Trending Topics on US Taxation

In the ever-evolving landscape of US taxation, staying abreast of current trends is vital for businesses and individuals alike. As we navigate through the intricacies of the tax system, it’s essential to be well-informed about the latest developments that may impact financial decisions. Here, at SBA Tax Consultants, we aim to shed light on the current trending topics in US taxation to help you make informed decisions and optimize your financial strategies.

COVID-19 Relief Measures: A Continuing Saga The global pandemic has left an indelible mark on various aspects of life, and taxation is no exception. Stay updated on the latest extensions and modifications to COVID-19 relief measures, including updates on the Paycheck Protection Program (PPP) and other relief provisions that can significantly impact businesses.

PPP Loan Forgiveness and Tax Implications: Navigating the Process with PPP loans playing a crucial role in supporting businesses during challenging times, it’s imperative to explore the latest information on loan forgiveness criteria, application processes, and any tax implications associated with PPP funds.

Remote Work Tax Considerations: Adapting to the New Normal as remote work continues to be a prevalent trend, delve into the tax implications for both businesses and individuals. Explore changes in state tax regulations and considerations for employers managing a dispersed workforce.

Tax Planning Strategies for Small Businesses: Maximizing Benefits Small businesses are the backbone of the economy, and understanding effective tax planning strategies is crucial. Explore the latest trends in deductions, credits, and compliance tips to help small businesses optimize their tax positions.

Cryptocurrency Taxation: Navigating Uncharted Waters. The rise of cryptocurrency presents both opportunities and challenges in the realm of taxation. Stay informed about the latest guidance on reporting and taxation of cryptocurrency transactions to ensure compliance and minimize risks.

Employee Retention Credit (ERC): A Valuable Resource The Employee Retention Credit has been a lifeline for businesses facing economic challenges. Explore the current updates, eligibility criteria, and strategies for businesses to leverage this credit effectively.

Green Energy Tax Credits: Investing in a Sustainable Future Incentives for green initiatives and renewable energy projects are on the rise. Stay up-to-date on the latest developments in tax credits and deductions for businesses engaging in environmentally friendly practices.

Tax-Advantaged Retirement Plans: Building a Secure Future Understanding tax-advantaged retirement plans is essential for individuals and businesses alike. Explore the latest trends and options for optimizing retirement savings while minimizing tax liabilities.

IRS Enforcement Priorities: Navigating Compliance Challenges Stay ahead of the game by understanding the current enforcement priorities of the IRS. Insights into their focus areas can help businesses proactively address compliance challenges and mitigate risks.

Conclusion:

In the dynamic world of US taxation, knowledge is power. By staying informed about these current trending topics, you can position yourself and your business for financial success. At SBA Tax Consultants, we are committed to providing expert guidance and support to help you navigate the complexities of the tax landscape. Keep abreast of these trends, and let’s forge a path toward financial prosperity together

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accountingac · 3 months

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Sage 50 US Payroll Reporting for the Cares act hr 748 PaycheckProtection Program

The CARES Act and the Paycheck Protection Program (PPP) have been a lifeline for many small businesses during these challenging times. As business owners navigate through the intricacies of the PPP, having reliable payroll reporting software becomes essential. That's where Sage 50 US Payroll steps in to save the day! In this blog post, we'll explore Sage 50 US Payroll Reporting for the Cares act hr 748 PaycheckProtection Program and ensuring compliance with PPP requirements. So get ready to discover how this powerful tool can simplify your life and help you secure those much-needed funds.

Overview of Sage 50 US Payroll Reporting

Sage 50 US Payroll Reporting is an essential tool for businesses looking to navigate the complexities of the CARES Act and the Paycheck Protection Program (PPP). With its user-friendly interface and comprehensive features, Sage 50 US Payroll makes it easy for small businesses to generate accurate payroll reports in compliance with PPP requirements.

One key feature of Sage 50 US Payroll Reporting is its ability to calculate eligible payroll expenses. This includes wages, salaries, tips, commissions, and other compensation paid to employees during the covered period. By accurately tracking these expenses, businesses can ensure they are maximizing their loan forgiveness potential.

In addition to calculating payroll expenses, Sage 50 US Payroll also allows users to generate detailed reports that provide a clear overview of their financials. These reports include information on employee wages and hours worked, tax withholdings, deductions, and more. Having access to this data not only helps with PPP compliance but also enables businesses to make informed decisions about their payroll processes.

Key Features of Sage 50 US Payroll for PPP

1. Automated Calculation and Tracking: With Sage 50 US Payroll, you can easily calculate and track the payroll costs required for your PPP loan forgiveness application. The software automatically calculates eligible payroll costs based on predefined rules, saving you time and reducing the risk of errors.

2. Customizable Reporting: Sage 50 US Payroll allows you to generate customizable reports specifically tailored to meet the requirements of the CARES Act and PPP program. These reports provide detailed information on payroll expenses, including employee wages, benefits, taxes, and more.

3. Integration with Accounting Software: One of the key features of Sage 50 US Payroll is its seamless integration with accounting software such as QuickBooks or Sage 50cloud Accounting. This integration ensures that all your financial data is synchronized accurately across different platforms, making it easier for you to prepare financial statements required for PPP reporting.

4. Compliance Monitoring: To ensure compliance with changing regulations related to the CARES Act and PPP program, Sage 50 US Payroll continuously monitors updates from government authorities and automatically adjusts calculations accordingly. This feature helps you stay up-to-date with any changes in guidelines while minimizing potential risks.

5. Secure Data Storage: Protecting sensitive employee information is crucial when dealing with payroll reporting for PPP applications. Sage 50 US Payroll provides secure data storage options that allow you to store confidential employee records securely within encrypted databases or cloud-based storage solutions.

6. Time-Saving Tools: Sage 50 US Payroll streamlines various aspects of managing payroll tasks by offering a range of time-saving tools such as automated tax filing services, direct deposit options for employees' paychecks, electronic W-2 forms generation,and automatic calculation of federal tax deposits.

This enables small businesses to focus their energy on strategic growth instead of getting tangled in complex administrative processes.

#sage50uspayrollreporting #thecaresacthr748 #paycheckprotectionprogram #paycheck #payrollreporting #accountingadvice #accountingsoftware

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loan-clark · 4 months

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#whoisnoteligibleforappploan

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loanclark · 4 months

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#whoisnoteligibleforappploan

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floridabulldog · 6 months

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UPDATE Oct. 12 - BSO deputies surrendering; BSO HQ closed.

Dozens of Broward Sheriff's deputies face indictment in burgeoning PPP loan fraud case)

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visbankingnews · 11 months

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Small Banks: Advantages,Disadvantages, and a Key Role in Future Small Business Growth

By: Ken Chase. When most people think about the banking industry, their minds tend to focus on big national and multinational financial institutions. However, America’s banks come in all sizes, and they all have their own vital roles to play in maintaining a stable and successful financial environment for the nation’s businesses and consumers. For their part, the country’s small banks continue to be one of the man drivers for ensuring small business growth across the U.S. Defining “small bank” To fully understand these banks’ important role in the financial ecosystem, it is critical to first define them. According to the Federal Reserve, the current definition of “small bank”applies to any banking institution that had assets of no more than $1.384 billion at the end of 2021. That definition reflects the current asset guidelines, which are updated annually to reflect changes in the inflation rate. Small banks: advantages and disadvantages For consumers and businesses trying to decide between various banking options, the choices can sometimes be confusing. While larger banks with greater assets may seem to be a better and more reliable option, small banks have many advantages over their larger peers. To make a sound decision, customers need to weigh those advantages against the smaller banks’ potential weaknesses. Making the wrong choice could hinder a customer’s ability to quickly get a mortgage or slow an entrepreneur’s efforts to keep a business afloat. Smaller community banks do have some disadvantages, of course. Because they have fewer assets, they may not be able to service every type of lending activity. In addition, many of them have a limited number of branches, and may offer fewer financial services than their larger competitors. And while small, community banks have been finding creative ways to offer services like insurance and investments, the small bank niche continues to trail those larger banks in that area. Despite those obvious disadvantages, small banks have many clear advantages over larger financial service providers. For example: - Small banks generally provide a more personalized experience for their customers. The tellers and executives who live in the community often know their customers firsthand. They shop in the same stores. Their children go to the same schools. Those connections can be powerful and create a strong sense of community between the bank and its clientele. - Local community bank employees may have greater autonomy when it comes to processing loan applications for individuals and businesses. While larger banks tend to rely on strict processing guidelines that focus entirely on credit scores, many small bank lending officers can review the entire loan application and exercise a greater degree of personal judgment. In many instances, local lenders can meet with a prospective borrower to ensure that they fully understand their unique circumstances and needs. - Most small banks have access to the same levels of technology used by larger institutions, so the divide between small and large banks is scarcely noticeable. Like their larger competitors, community banks generally offer online banking services, access to ATMs, and card services that are comparable to those offered by larger firms. Why smaller community banks continue to be trusted entities It is also important to note that customers consistently report trust in their local banking institutions. That trend has been true for many decades but appears to have grown even stronger in recent years, largely due to the Covid-19 pandemic. According to reports, smaller banks played an outsized role in helping small businesses gain access to the critical PPP lending they needed to survive the nation’s Covid-related lockdowns. Those smaller banks’ nimble response to the crisis resulted in some businesses rethinking their relationships with larger financial entities. Meanwhile, many of the nation’s largest banks reportedly gave priority to their wealthiest customers, who were allegedly allowed to avoid online application portals and instead submitted their applications directly to their bankers. According to reporting from the New York Times, that unequal treatment enabled almost all of the super-wealthy applicants to obtain approval for PPP loans, while only one of every-fifteen smaller retail banking clients got the help they needed. Smaller banks across the United States appear to have served their customers better during the crisis, and that is likely to translate into even greater client trust in the future. Small business owners will continue to remember who stood by them during their most trying times, which will only serve to ensure strong bank-client relations in the coming years. Managing growth in an ever-evolving economy According to estimates, small banks represent a clear minority of banking institutions in the U.S. At the same time, however, these banks reportedly account for more than half of all small business lending in the country. They are also proving to be critical partners for fintech company growth, as that sector has seen a dramatic surge in startups in the last few years. Small banks can continue to enjoy growth in the coming years by focusing on maintaining their core strengths, leveraging new technologies, and expanding their service offerings to meet changing customer expectations. Savvy banks will also increase their reliance on customer data to ensure that they provide the financial products clients want and need. Read the full article

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richardcaldwellerc · 1 year

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smitharaghu · 1 year

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What You Should Know About PPP Loans From Community Financial Institutions

Community financial institutions, or CFI's, are banks and other financial institutions that make loans for low and moderate income people. These loans are repaid through interest payments, and in some cases, the borrower can also apply for loan forgiveness. However, there are some things you should know before deciding whether or not to take out a PPP loan.

Loan forgiveness application process

If you have a loan with one of the Community financial institutions, it is important to know how the forgiveness process works. There are a number of requirements for submitting an application and you should ensure that you submit the necessary documentation.

First, you will need to verify that your PPP loan is eligible for forgiveness. The amount you are forgiven will depend on your payroll expenses and non-payroll expenses. You can apply for forgiveness through your lender or by submitting the application online.

After completing an application, you will need to submit the completed form and all supporting documents. Failure to provide proper documentation can delay processing and may impact your loan's terms.

When applying for forgiveness, the lender will need to verify your payroll costs and any mortgage interest payments. They must also determine the number of FTEEs you have received during the applicable periods.

For loans under $150,000, you are only required to submit a single page application. This may help streamline the forgiveness process and make it easier for lenders to approve your request.

Impact of the CARES Act on PPP lending by commercial banks

Banks are re-examining their role in the Paycheck Protection Program (PPP), an aid program that disbursed $525 billion in loans to help businesses cope with the COVID-19 pandemic. But the program isn't without its flaws. During its first year, PPP faced a backlash.

The government created PPP as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). It was designed to encourage small businesses to keep their workers on the payroll during a disease epidemic.

In August, the program closed. The Small Business Administration (SBA) has updated its guidance for PPP loans. They report that 11.8 million forgivable loans were approved as part of the program. These loans are forgiven if the loan spending criteria are met.

Some banks have restricted access to PPP loans to certain businesses, while others have restricted access to their existing customers. This is likely due to the fact that banks have pre-existing relationships with certain businesses. Moreover, some have implemented informal practices that could raise fair lending concerns.

Impact of the Riegle Act on PPP lending by commercial banks

The Riegle-Neal Act paved the way for national and state banks to branch across state lines. It also set a ten percent deposit cap for banks. However, states could opt out of the requirement. In the end, most state legislatures have opted out.

While the act's impact on banks' PPP lending is uncertain, it is clear that the act has played a significant role in shaping the nation's banking industry. This article examines how the law has shaped bank compensation and the role commercial banks play in advancing government fiscal policies.

The act's repercussions can be seen in the number of lawsuits filed against big banks. In many cases, the lawsuits accuse them of asset mismanagement. Banks can also be accused of discriminating against minority business owners.

For this reason, the government needs to use incentives to reward banks for following its fiscal agenda. These rewards can take a variety of forms, such as guaranteeing loans to foreign buyers. Alternatively, they could be more like stock options for the top managers.

FAQs for borrowers who obtained PPP loans

If you're a borrower who obtained PPP loans from a community financial institution, you may be wondering what to expect after the loan is closed. You should be aware that you have obligations after you receive the loan.

There are a number of requirements you need to meet in order to obtain a PPP loan. First, you must have less than 300 employees. This includes independent contractors, sole proprietorships, nonprofits, veterans' organizations, and tribal concerns.

Second, you must have operated during all four quarters of the year. In addition, you must have suffered a revenue reduction of at least 25%. The reduction must be demonstrated by submitting annual tax forms. For example, if your business generated $1,000,000 in revenues in 2018, you would have to prove that the revenue will be reduced to $550,000 by the end of 2019.

Third, you must have not received a PPP loan on or before December 27, 2020. However, you can obtain a PPP loan after that date if you have experienced a 25% revenue reduction.

#loans #interest

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amadowelch · 1 year

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ERC Tax Credits Info 2022

What is the Employee Retention Tax Credit

Businesses that have closed due to government orders, or have experienced a significant decrease in gross receipts, are eligible for the Employee Retention Tax Credit.

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The Forbidden Truth About Employee Retention Credit Unmasked By A Vintage Professional

Employers may want to review their 2020 and 2021 financial statements to determine if they have experienced a substantial decrease in gross receipts. Qualified wages may also include the employer's medical plan expenses that are directly related to the wages. The CARES act states that any employer receiving a Paycheck Protection Program loan was not eligible for the Employee Retention Credit unless the PPP loan was repaid by May 18, 2020. Later, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 removed this provision. PPP loan recipients are now eligible to receive the Employee Retention Credit.

General Information Faqs On Internal Revenue Service

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The credit equals 50 percent of the qualified wages paid to each employee by the employer. The maximum amount for qualified wages in 2020 with respect to an employee is $10,000 for all calendar quarters. Also, the 2020 tax year will have a $5,000 maximum credit per employee. An eligible employer can reduce its employment tax deposits by the expected credit amount for the quarter. The employer could retain federal income tax withheld from employees, the employees' share of social security and Medicare taxes, and the employer's share of

Great info videos and FAQ for the #employeeretentioncredit - this is a resource with frequently asked questions about the how the #employeeretentiontaxcredit works and who is eligible.https://t.co/fihkOcrRDQ

— CryptoCrisps (??,??) 9452 (@CryptoCrispsBee) November 14, 2022

Helpfull Educational Videos and Reviews

Who is eligible for the Employee Retention Credit?

Eligibility rules have been updated for 2021.To be considered for the credit, more than a nominal portion of the employer's business operations must have been suspended. For the purposes of the employee retention credit, a portion of an employer's business is considered more than a nominal portion of operations if either the gross receipts from that portion of business operations is not less than 10% of gross receipts (determined by same calendar quarter in 2019) or the hours of service performed by employee is that portion... More

Employers who are eligible may claim the Employee Retention Credit if they pay qualified wages after March 12, 2020 or January 1, 2021. Eligible Employers may be eligible for credit for qualified wages paid prior to March 13, 2020. ERC Assistant is an employee retention credit service that offers a streamlined process for onboarding clients and filing claims in as little as 1-2 weeks. ERC Assistant also offers a secure Client portal that protects you from ERC fraud and other malicious persons. With minimal time and effort, you can get an initial ERC estimate for free.

Employee Retention Credit Restaurants

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https://erctaxcreditsinfo2022.blogspot.com/2022/11/erc-tax-credits-info-2022.html ERC Tax Credit Restaurants ERC Tax Credit Construction Companies ERC Tax Credit Restaurants ERC Tax Credit Staffing Firms ERC Tax Credit Dentists ERC Tax Credit Physicians https://yahoodrtimothyfrancis593.blogspot.com/ https://yahoodrtimothyfrancis593.blogspot.com/2022/11/yahoo-dr-timothy-francis.html https://acrepairwestpalmbeach887.blogspot.com/ https://acrepairwestpalmbeach887.blogspot.com/2022/11/ac-repair-west-palm-beach.html https://onlineertcapplicationforresta627.blogspot.com/2022/09/online-ertc-refunds-help_01203337591.html

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innovativeresilience · 1 year

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For Black-owned businesses, concerns extend beyond inflation, supply chain issues--NBC

Sept. 20, 2022, 2:16 PM EDT / Updated Sept. 21, 2022, 10:42 AM EDT

By Curtis Bunn and Claretta Bellamy

When Keith Millner, wife Charmaine and two of their friends decided to open a Jersey Mike’s Subs sandwich shop in Atlanta in 2019, they had no idea they would end up working behind the counter.

Their doors opened in November 2020, during the heart of the Covid pandemic. When businesses started reopening in July 2021, the nature of commerce had changed — and Black businesses felt the reverberations. For this group at Jersey Mike’s, part of the work became finding dedicated workers post-pandemic. With little to no options, they were forced to don aprons and hats and roll up their sleeves.

“It’s either that or close the business,” said Millner, a former commercial banker who now coaches individuals and organizations on corporate culture, public speaking and other areas. “We were trained on every aspect of the business. So, yeah, we ran the counter, made sandwiches, worked the grill, ordered inventory — whatever it took. And we still do.”

A recent study of small business owners by the U.S. Chamber of Commerce found that inflation and supply chain issues are the top challenges entrepreneurs face today. However, Black business owners, like Millner and Co., face other unique hurdles that are specific to the Black community.

Unlike their white counterparts, Black businesses deal with systemic racism — a fact highlighted in a study on the government’s Payment Protection Program (PPP). The study shows that there are structural inequities “built-in to the administration of the program, the application process, and the fee structure.” Additionally, Black businesses often encounter racism and discrimination when securing bank financing, which leads to them having difficulties acquiring loans.

There has also been a massive increase of Black workers wanting flexibility instead of working traditional 9-to-6 schedules, leading to labor shortages, according to a study by Future Forum.

A Future Forum/Slack survey of 5,448 workers found that 83% of Black workers want a flexible working schedule to create a work-life balance, which creates a labor shortage for Black business owners serving the Black community, especially in the service industry. Millner’s Jersey Mike’s in Atlanta is located in an area with a largely Black demographic and workforce. Millner and his corporate executive co-partners Charmaine Ward, Eric Harrison and Nicole Williams say these stats coincide with their ongoing staffing issues.

“Their freedom and flexibility in their schedule are more important to them than a regular paycheck,” Millner said of many young Black workers he has employed. “And so, they will drive Uber or Lyft. They will take the occasional odd job or they’ll go work for a moving company for a day or two or they’ll take four roommates so that they can split their rent. They’re making a lot of different choices from a lifestyle standpoint. And it impacts business.”

The challenge of securing funding

The Chamber of Commerce study said that 85% of small business owners say they are concerned about the impact of inflation on their business, up from 74% last quarter. One in three small business owners call inflation their highest concern and 67% of them have raised prices in response to inflation. Those concerns weigh heavily on Black-owned businesses, too. But the biggest hurdle is finding those willing to finance their business.

Maya Barfield, a veterinarian who owns Willow Brook Animal Hospital in Dallas, was astounded and deflated when, despite having pristine credit and attempting to purchase an established successful business, she and her husband were refused bank loans.

“You put together a great portfolio and it’s not enough,” Barfield said. “A process that should take 30 to 45 days took us six months. It was exhausting. Our white counterparts who are on equal footing had no such problems.”

She and her husband, a pharmaceutical company executive, had to use programs such as Local Initiatives Support Corporation (LISC)’s Black Economic Development Fund to secure the resources to procure their business.

This concern is unique to Black entrepreneurs. A number of studies and organizations point out various discrepancies in lending practices, all of them pointing to Black entrepreneurs being denied at an exponentially higher rate than non-Blacks. The Federal Reserve found that over half of Black business owners were rejected for bank loans, which is twice the rate compared to white business owners.

The U.S. Small Business Administration’s flagship 7(a) program decreased loans to Black businesses by 35% in 2020, the largest drop in lending to any race or ethnic group tracked by the agency.

Millner and Co. had a curious experience when attempting to open their Jersey Mike’s restaurant. They received two approval letters from major banks. But days before closing, they were told they could not be funded.

“We have A-1 credit—all of us,” he said. “We had purchased equipment and the initial inventory, signed a 10-year lease and hired people. And then we had to scramble.

“I used to be a banker, so I know the drill. This was not a common practice, approving someone and then pulling the offer just before closing.”

Many Black businesses, the Brookings Institute’s report said, had greater luck pursuing loans from non mainstream banks. NPR reported that Savannah, Georgia’s Black-owned Carver State Bank helped many Black businesses that were denied loans from mainstream banks, issuing $9 million in PPP loans within a five-month period.

But all PPP loans have not been beneficial to Black-owned businesses. The Center for Responsible Lending stated some of those challenges in their report.

“The Paycheck Protection Program continues to be disadvantageous to smaller businesses, businesses owned by people of color, and businesses without employees. PPP loans can be forgiven if the business is able to use the funds for eligible expenses within eight weeks of receiving the loan,” the report read. “This requirement makes it challenging, particularly for very small businesses, to ensure loans are forgiven rather than converted into long-term debt.”

Non-Black support has dwindled

Black-owned businesses were energized by the response to the Black Lives Matter-led social justice movement of 2020. Inspired by the cause and frustrated with long-standing inequities that were on full display when George Floyd was murdered by a police officer in Minneapolis, BLM helped ignite a push to support Black-owned businesses. There was no data to support the uptick in sales that owners say they initially felt, but anecdotally, they contend there was a boost once businesses reopened after the pandemic-forced shut down.

According to NBC Bay Area, searches for “Black-owned businesses near me” peaked in June 2020, with companies like Yelp making it easier for people to find and support Black-owned businesses, per data from Google.

That meant non-Black patrons were on the support train, too. “I felt it and I saw it,” said Mel Banks, who was shopping for a birthday gift for his wife last week at The New Black Wall Street in Stonecrest, Georgia, about 17 miles east of Atlanta. It is a mall that has more than 100 shops and restaurants — all Black-owned.

Over time, though, the enthusiasm for the BLM push diminished. And as BLM the movement quieted, so did support.

Tremaine Jasper, owner and editor of PhxSoul.com, a website that lists events and has a Phoenix-area Black-owned business directory, said he benefited from the social justice movement and community effort to support Black-owned business. He said he received up to 10,000 views in one day, when he usually had 13,000 a month. His website was promoted on mainstream media outlets, including rapper Jay-Z’s Roc Nation.

While traffic on his website has slightly dipped since then, Jasper said that he also witnessed a decline in revenue for advertising and grant funding opportunities, which were much more promoted to entrepreneurs and made available during the pandemic. He said it is difficult to pinpoint the cause for the decline, but noted one factor could be from a decline of media coverage highlighting Black-owned businesses.

“I think that PhxSoul.com has probably dropped off in the minds of people who don’t regularly visit the website,” he said.

The same can be said for salon owner Nikia Londy, who runs Intriguing Hair, a wig and hair extension shop in Boston. She said that during the height of the social justice movement, corporations and financial institutions pledged to support Black-owned businesses. However, two years later, Londy, 37, said she doesn’t “really see where that has gone.”

Alternative options for Black businesses

This helped small business owners like Londy, who faced major financial challenges both during and post-pandemic. Aside from struggling to make payroll during the government shutdown, and having her store looted during the 2020 protests, Londy was denied a business loan from her bank of 10 years. Londy said her bank’s rejection “didn’t make sense,” and as a result was grateful for the alternative funding options like the ones LISC provided.

The salon owner eventually received two $10,000 grants, one from Verizon’s Small Business Digital Ready program through LISC and another from PayPal through the Association for Enterprise Opportunity, a program that provides capital and services to help underprivileged communities. Through LISC’s digital accelerator program, she also was able to hire three college interns from the Hult International School of Business, who worked on a digital marketing campaign for Intriguing Hair and helped increase customer traffic to the salon.

LISC also works with many major banks and insurance companies, and public and private foundations that invest in communities of color. Hall, who leads LISC’s small business and commercial lending, said the organization works with partners and foundations to decrease down payment risks for borrowers. The normal down payment risk for commercial real estate averages around 10-20% for borrowers, Hall said, but his organization lowers it to between 3 to 5% for borrowers.

Hall advises Black businesses to consider certain industries, like professional services, in which they have a better chance at being successful. Hall says that Black-owned businesses need to be in more sectors and should reflect the community needs. He cites “The Jeffersons,” a popular 1970s Black sitcom centered on a Black man who built wealth as a dry cleaners owner as an example of a business endeavor that Black people embraced.

“In the ’70s and ’80s, African Americans … we dominated the dry-cleaning business nationally,” Hall said. He said that’s not the case anymore, adding that Black American likely “didn’t see the value in it.”

Now, Jasper is focused on the solutions. He said it’s also important for Black business owners to understand the value of partnering with other Black-owned businesses: “Let’s work on our strengths and weaknesses and try to present a good opportunity.”

CORRECTION (Sept. 21, 2022, 10:42 a.m. ET): A previous version of this article misstated the year Keith Millner opened up his Jersey Mike’s Subs sandwich shop in Atlanta. It was 2020, not 2019.

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aftercareprogram · 2 years

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Q&A: Tips for How Therapists Can Use the Federal Stimulus Offerings

We had so many questions come through for our Tips for How Therapists Can Use the Federal Stimulus Offerings webinar that we couldn’t get to them all. Below we’ve compiled some additional questions and answers from the webinar. We will continue to update this information as more details emerge.

PPP Loan For Therapists – FAQ’s:

What does 2 1/2 times your W-2 mean in terms of the loan?

The PPP loan is based on 2 1/2 times your payroll, or if you are a sole proprietor, is based on the average monthly net profit (line 31 on your Schedule C).

Is it the 2019 tax return needed or the 2018?

Either one, but if you haven’t done your 2019 taxes yet, in the context of being ready for the application go ahead and have your documentation prepared – the banks are likely going to ask for it.

Do you have to demonstrate loss of income as sole practitioner therapists? We may not see that drop for month or two?

You do not have to have suffered a financial impact in order to qualify. You being affected by COVID-19 could even mean having to switch your services to telehealth.

What kind of accounting is required if I want to sign up for the EIDL instead of the PPP?

Your bank should provide guidance on what they are requiring to document your calculation.

I have an LLC partnership use Schedule C to report income. I have no employees other than myself. Would I be considered an “applicant with not more than 500 employees?” Or an “applicant who is an individual who operates under a sole proprietorship, with or without employees?”

If you file Schedule C you would use “applicant who is an individual who operates under a sole proprietorship, with or without employees.”

For small business, self-employed sole proprietors, that may have started up in the last six months or so, the Schedule C for 2019 for that business may show a lot more expenses vs. income, so the net income would be less than the current monthly income and won’t reflect anticipated income for 2020. Any ideas on how the PPP might do computations for new businesses?

The SBA should provide guidance to the banks on what numbers to use in your situation. You should be able to use 2020 numbers if you just started this year. Your banker should be able to provide help on that.

What about Subchapter S corporation?

You would file as a business and not as a sole proprietor.

Is it true that only 25% of the loan can be used for rents, health insurance, etc. and the other 75% must go to salaries and wages?

There is a calculation during the “testing period” to determine how much of the PPP loan can be forgiven. Generally that is the case, but your CPA/bank will need to look at the details on how to compute the forgiveness to be sure.

Will the forgiven loan amount then be counted as taxable income on 2020 taxes?

Our understanding is that forgiveness on the PPP loan will not be considered taxable income.

Is landlord/rental income protected by the PPP or EIDL loans?

Rental income is generally not considered self employment income and cannot be used in determining your amount of loan.

I’m not clear how forgiveness is connected to a sole proprietor. I have no employees. A few 1099’s but as you mentioned, they don’t count. What counts toward forgiveness for a self employed sole practitioner?

There has not been clear guidance from the SBA on what they will look at for sole proprietors during the “testing period” to determine the loan forgiveness. This is why we recommend pulling all your documentation so you can be as prepared as possible.

What is there for solo practitioners without employees who pay quarterly taxes but don’t pay themselves a specific salary, and income is way down due to quarantine?

You can apply for the PPP loan as a sole proprietor; you do not need to have employees.

It seems the SBA’s Economic Injury Disaster Loan (EIDL) also provides vital economic support to any small business (less than 500 employees) to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic without penalty. Why do you recommend applying for the PPP instead?

The EIDL package does/did allow for up to $10,000 advance, however we believe this advance would reduce any funds received from the PPP advance though. Additionally, as of Friday, April 10, 2020, the media has been reporting that the EIDL program is running out of funds and having significantly more issues.

Sources: https://integrativelifecenter.com/qa-tips-for-how-therapists-can-use-the-federal-stimulus-offerings/

source https://aftercareprogramc.blogspot.com/2022/09/q-tips-for-how-therapists-can-use.html

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