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4thought graphic - blog 2020

Restaurant Revitalization Fund to Start Disbursing $28.6 Billion in Stimulus Aid

Posted by Concannon Miller on Fri, Apr 30, 2021

Applications for $28.6 billion Restaurant Revitalization Fund will be accepted starting at noon Monday, May 3, the U.S. Small Business Administration has announced.

The grants are for restaurants with 20 or fewer locations to help cover their pandemic-related revenue losses in 2020.

Restaurants can start registering for accounts now. In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:

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Topics: McDonald's management, Restaurants, 2020 Coronavirus

The Employee Retention Credit: The Improved Benefits for Businesses in 2021

Posted by Concannon Miller on Thu, Apr 22, 2021

The pandemic has adversely affected many sectors of the U.S. economy, causing widespread job losses. At the start of the national emergency, Congress created a novel tax break — the Employee Retention Credit — to entice employers to retain employees.

But three different laws have created and changed the credit, which has led to significant confusion. Here's a summary of how the ERC has evolved over the last year from the CARES Act to the American Rescue Plan Act.

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Topics: 2020 Coronavirus

PPP Loan Deadline Extended to Allow More Businesses to Get Funds

Posted by Concannon Miller on Mon, Mar 29, 2021

The application deadline for Paycheck Protection Program (PPP) loans has been extended two months from March 31 to May 31.

The extension will allow more businesses to apply for the funds and also allow more time for the U.S. Small Business Administration to process more applications. Congress approved the extension last week; it currently awaits President Biden’s signature.

More than two million PPP applications have been held up by error codes and approximately 190,000 applications remain unapproved, according to the American Institute of CPAs. The extension gives the SBA until June 30 to process PPP loans.

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Topics: 2020 Coronavirus

Third Stimulus Extends Popular Business Tax Credit, Provides Restaurant Funding

Posted by Concannon Miller on Wed, Mar 10, 2021

Congress has passed a third COVID-19 pandemic related stimulus bill, providing extended and renewed business funding and tax benefits.

The biggest business benefit is likely the extension of the popular Employee Retention Tax Credit. The third stimulus bill, formally known as the American Rescue Plan, extends the credit through the end of 2021.

The $1.9 trillion bill also includes $28.6 billion in relief for the restaurant industry, limited to restaurant groups with 20 or fewer locations.

Among the most significant individual benefits are a third round of direct stimulus payments and expanded unemployment benefits and child-related tax credits. Read on to learn about the most significant business and individual benefits.

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Topics: 2020 Coronavirus

New PPP Loan Rules Announced to Help Small Businesses

Posted by Concannon Miller on Tue, Feb 23, 2021

The federal government has announced new rules for Paycheck Protection Program loans intended to help more small businesses obtain them.

Starting Wednesday, only businesses with 20 or fewer employees can apply for PPP loans during a two-week period. The 14-day exclusive application period will allow lenders to focus on serving small businesses, President Biden’s administration announced.

The administration also announced plans to assist sole proprietors, independent contractors, and self-employed individuals receive more financial support. Many were structurally excluded from the PPP or were approved for as little as $1 because of how PPP loans are calculated.

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Topics: 2020 Coronavirus

PA Provides PPP Tax Relief, COVID Business Grants

Posted by Concannon Miller on Mon, Feb 8, 2021

Pennsylvania has approved legislation clarifying tax rules on PPP loans and also providing $912 million in COVID relief aid.

The legislation, approved Friday, clarifies that Paycheck Protection Program loans that are forgiven are not taxable in Pennsylvania and that businesses may deduct eligible expenses paid with PPP loan proceeds. This aligns Pennsylvania’s PPP rules with federal rules approved in December and is very beneficial to businesses and individuals with PPP loans.

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Topics: Business tax planning, 2020 Coronavirus

Many More Businesses Now Eligible for COVID Employee Retention Tax Credits

Posted by Angel Chiariello on Wed, Jan 13, 2021

The Employee Retention Tax Credit (ERTC) provision of the 2020 CARES Act was overshadowed by the PPP loan program, primarily because the original ERTC provisions prohibited an employer with a PPP loan from claiming ERTCs.

The 2021 Consolidated Appropriations Act, passed just weeks ago and most known for allowing businesses a tax deduction for the expenses paid with tax-free PPP funds, made sweeping changes to the ERTC rules as well. Most notably, lawmakers removed the provision disallowing businesses with PPP loans to participate in the ERTC program.

As a result, these valuable credits are now available to more business owners for wages paid in Q1 & Q2, 2021 (and possibly for wages paid in 2020). For more information about the original provisions of this program, see our article here.

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Topics: Business tax planning, 2020 Coronavirus

COVID Tax Relief Measures: What’s Extended for Businesses into 2021

Posted by Concannon Miller on Tue, Jan 12, 2021

Before President Trump signed the latest economic stimulus law, several temporary COVID-19-related federal tax relief measures were set to expire on December 31, 2020.

This article explains the current status of eight important temporary relief measures and whether the Consolidated Appropriations Act (CAA) extended them.

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Topics: 2020 Coronavirus

Second Stimulus Offers More Business Benefits, Tax Credits

Posted by Concannon Miller on Tue, Dec 29, 2020

With its $900 billion price tag, the second federal stimulus bill includes a multitude of benefits for businesses – so many we couldn’t fit them in one article.

Our first article on the bill focused on the new Paycheck Protection Programs rules and additional allocation (you can read it here if you missed it) but there are other provisions businesses should learn about, including the extension and expansion of the Employee Retention Credit and Families First Coronavirus Response Credit.

Read on below for more details on both credits along with other new and extended tax provisions:

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Topics: Business tax planning, 2020 Coronavirus

New Federal Stimulus Deal Includes New PPP, Other Business Benefits

Posted by Concannon Miller on Wed, Dec 23, 2020

Congress has approved a second COVID-19 stimulus deal with both business and individual benefits. 

Top on the list may be the deductibility of businesses expenses paid with Paycheck Protection Program loans. This was Congress’s original intention and the new stimulus deal remedies the problem. It’s great news for anyone with a current PPP loan.

Each state would now have to act to allow these expenses to be deductible on your state income taxes, as well. We’ll be following the situation in all the many states where our clients are located and will keep you up to date.

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Topics: Business tax planning, 2020 Coronavirus

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