We made it through 2020 and amidst all the noise in the news about vaccines and 2020 stimulus bills, that seem to be funding everyone BUT business owners in the United States, I want to share a few things.
2020 Stimulus For Small Business
First of all, while Congress did eventually pass another stimulus bill that does have provisions in it for small businesses, we can’t depend on that always happening.
A lot of money got spent keeping companies afloat in 2020. And those debts are going to come due soon. Some of my PPP (Paycheck Protection Program) clients are already in the process of getting those loans forgiven (or at least a good deal of the principal reduced).
It’s CRITICAL if you received any kind of help from the Small Business Administration (SBA) last year that you attend to that paperwork WELL in advance of Tax Day.
…In short, that means now!
Seriously, just like when the “new” tax laws went into effect in 2017/2018, there are a lot of pieces of the SBA/PPP loans that are unprecedented.
While we, as tax professionals, “know” what the laws say. Many times, when new laws are enacted, there is always room for those laws and programs to be interpreted.
So the deal is simple …
MAKE SURE ALL YOUR FINANCIAL DUCKS ARE IN A ROW!
2020 Stimulus: The Difference Between Repayment & Forgiveness
This is certainly not a time to wait, either. Act now, while it’s early, and go back through that paperwork.
Look at all those emails from the SBA. Dig into anything you might have signed last year in the Spring and Summer. And make sure you’ve lived up to your obligations.
That is literally the difference between repayment and forgiveness.
Now, let’s be real for a moment…
PPP Loans Originated From A Bank
I know that a lot of folks signed a lot of paperwork last year. And the SBA tasked banks to fund the PPP loans. So it’s important to remember that if you have a PPP loan, it originated from a bank.
Nearly ALL the big national banks were “in” on it. And many, many regionals. Some of those banks, like BB&T, merged and became other banks. Namely, Truist. Also, the bank that originated your loan may not be the current servicer of your loan.
Documentation Challenges?
Could there be some challenges with the documentation as a result? You bet!
All the more reason to get your ducks in a row now rather than at the 11th hour in March and April.
Do It Now
So, this week – not next week, or the next, or the next. Be systematic in your search and track down all the documentation you signed for any SBA/PPP monies your business received last year.
Once you’ve done that, review what standards you’ll need to achieve to be able to have that loan forgiven, And if you have ANY questions or worries about it, then set up a call with me immediately.
It’s incredibly important that you do this right, as there are literally thousands of dollars in savings on the line. But ONLY if you do it correctly.
My team and I are more than happy to answer your questions. Use the button below to ‘Book a Free Consultation’ or give us a call or send us a message through our contact form below and let’s get you on the right track!
