Tag: ppp

  • The third stimulus package is expected to pass soon, what does it mean for businesses?

    The third stimulus package is expected to pass soon, what does it mean for businesses?

    The third stimulus package (dubbed The American Rescue Plan of 2021) is expected to go to the House today for a final vote – in fact by the time this article goes live it may have already – and then it is expected to be signed into law by President Biden.

    We’re all aware of the stipulations this has for individuals, with many receiving a third wave of stimulus payments in the form of $1400 for every adult and child that meets the current income criteria as well as many expecting an increase to the Child Tax Credit, but what in this bill is specifically outlined for businesses?

    The first stimulus packages included notable relief in the form of the forgivable Paycheck Protection Program (or PPP) loans. These loans offered businesses 24 weeks of paycheck protection for their employees so they could remain in business and keep their staff even as their businesses were subject to widespread closures.

    Earlier in the year we covered the benefits of the PPP and how it compared to the Economic Injury Disaster Loan (EIDL) program here.

    The American Rescue Plan Stimulus bill also includes many provisions for businesses just like the first two packages did, including the following:

    • $1.25 billion for shuttered venue operators
    • $7.25 billion for the Paycheck Protection Program (PPP)
    • $15 billion for targeted Economic Injury Disaster Loan (EIDL) advance payments
    • $25 billion for restaurants, bars, and other eligible providers of food and drink
    • And $175 million to create a “community navigator” pilot program to increase awareness of and participation in COVID-19 relief programs for business owners currently lacking access

    The Paycheck Protection Program in particular has allocated over $662 billion to businesses since being established 11 months ago, and there is sill $284 billion in funding available.

    However, the new stimulus bill did not extend the window for applying. If your business meets the criteria and you’re considering applying for this program you must do so by March 31st of this year at which time the window is scheduled to close for good.

    The current bill also has a clause to make it more available for not-for-profit businesses by including a new category entitled “additional covered nonprofit entity,” we suggest meeting with your accountant or tax preparer if you think this may apply to your business.

    If your business requires greater aid than the PPP provides for and you have no more than 300 employees, the EIDL program may be a better fit for you. An additional $15 billion in funding to that program will be made available in the next round of stimulus. This loan program applies to your business if you suffered a 30% or more loss in revenue during any 8 week period between March 2nd, 2020 and December 31st, 2021.

    There is much more to it than we can go over here but we again suggest meeting with your accountant or tax preparer if your business suffered a loss during in the 12 months since COVID-19 began (which probably applies to many if not all of us) and think one of these programs could help your business on the path to recovery and economic growth.

    Looking for more to read? We suggest these tech articles from the last week.

    This article was powered by Valley TechLogic, an IT provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://x.com/valleytechlogic.

  • Taxes & Technology – What Can Help Your Business RIGHT Now

    Taxes & Technology – What Can Help Your Business RIGHT Now

    To say this year has had a lot of twists and turns is an understatement, and for many that includes financial hurdles they couldn’t have foreseen.

    Today we want to cover the topic of business loans that are available for companies struggling in in the onslaught of this current pandemic, as well as tax solutions that will help lighten the load of the business purchases you still need to make even as the current situation rages on.

    Now you may be saying to yourself, aren’t you a technology company? Why are you talking about taxes?

    While this may be true, as a business ourselves AND one that helps businesses of all shapes and sizes, we felt we could offer a new perspective on this topic that you maybe hadn’t considered. As well as our own unique input on how we’re putting these tips into practice.

    Besides that, technology is linked to many different systems, including the financial system. Unless you’re a stickler for mailing things in, it’s hard to argue against the quickness and convenience of electronic filing in most cases as an example.

    With that said let’s start with our initial topic of discussion, PPP funds. PPP or the Paycheck Protection Program has been in the news a lot recently, but what does it cover? And how does it compare to the EIDL (Economic Injury Disaster Loan)?

    PPP vs EIDL Chart

    As you can see from our chart, they have different benefits and downsides, and it’s hard to say at first glance what may be right for your business. In either case you’ll probably be adding to the liquidity of your business which will probably help you continue to fund other day to day necessities, including your technology budget. For more information on PPP click here, the Small Business Association will always have the most up to date information on this topic.

    The deadline for applying for PPP is August 8th, so you must hurry if you want to apply for it. While an extension might happen (it did before) why risk it?

    There are also talks in the works by Congress of an additional bill that would forgive PPP loans less than $150k automatically without documentation (basically turning them into grants). You can learn more about this proposed addition to the CARES act here. For many businesses this could make a massive difference in their ability to stay afloat in these difficult times.

    Aside from that if you are planning on a technology upgrade soon, we have a tax tip that may save you thousands on those purchases.

    Every year businesses across the country take advantage of a certain tax deduction called Section 179. To put it briefly, Section 179 allows you to deduct business related expenses of tangible property and equipment. This can include new computers and servers that will allow you to run your business more effectively.

    For example, if you’re still trying to get your at-home work force up and running then it may make sense to furnish those employees with company laptops. They will be significantly safer than using their own devices and it may help them do their jobs much more effectively.

    Or perhaps you need a server you can use as a private cloud so you can conduct your business from home, Section 179 can help with that purchase too. At the end of the year those savings can be lost, or you can reap the benefits of getting your necessary purchases at a significant discount after the tax savings.

    We have updated our Section 179 Guide for 2020, you can learn more here. As always, work with your attorney or accountant when trying to take advantage of these beneficial programs for your business, they will have the best method for applying them to your situation.

    Looking for more to read? We suggest these tech articles from the last week.

    This article was powered by Valley TechLogic, an IT provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://x.com/valleytechlogic.

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