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Governor Abbott May 6 Executive Order On Reopening

Governor Abbott Issues Executive Order To Expand Openings Of Certain Businesses and Activities

May 6, 2020 | Austin, Texas | Proclamation

WHEREAS, I, Greg Abbott, Governor of Texas, issued a disaster proclamation on March 13, 2020, certifying under Section 418.014 of the Texas Government Code that the novel coronavirus (COVID-19) poses an imminent threat of disaster for all counties in the State of Texas; and

WHEREAS, on April 12, 2020, I issued a proclamation renewing the disaster declaration for all counties in Texas; and

WHEREAS, the Commissioner of the Texas Department of State Health Services (DSHS), Dr. John Hellerstedt, has determined that COVID-19 represents a public health disaster within the meaning of Chapter 81 of the Texas Health and Safety Code, and renewed that determination on April 17, 2020; and

WHEREAS, I have issued executive orders and suspensions of Texas laws in response to COVID-19, aimed at protecting the health and safety of Texans and ensuring an effective response to this disaster; and

WHEREAS, I issued Executive Order GA-08 on March 19, 2020, mandating certain obligations for Texans in accordance with the President’s Coronavirus Guidelines for America, as promulgated by President Donald J. Trump and the Centers for Disease Control and Prevention (CDC) on March 16, 2020, which called upon Americans to take actions to slow the spread of COVID-19 for 15 days; and

WHEREAS, I issued Executive Order GA-14 on March 31, 2020, based on the President’s announcement that the restrictive Guidelines should extend through April 30, 2020, in light of advice from Dr. Anthony Fauci and Dr. Deborah Birx, and also based on guidance by DSHS Commissioner Dr. Hellerstedt and Dr. Birx that the spread of COVID-19 can be reduced by minimizing social gatherings; and

WHEREAS, Executive Order GA-14 superseded Executive Order GA-08 and expanded the social-distancing restrictions and other obligations for Texans, aimed at slowing the spread of COVID-19 and protecting public health and safety; and

WHEREAS, after more than two weeks of having in effect the heightened restrictions like those required by Executive Order GA-14, which had saved lives, it was clear that the disease still presented a serious threat across Texas that could persist in certain areas, but also that COVID-19 had wrought havoc on many Texas businesses and workers affected by the restrictions that were necessary to protect human life; and

WHEREAS, on April 17, 2020, I therefore issued Executive Order GA-17, creating the Governor’s Strike Force to Open Texas to study and make recommendations on safely and strategically restarting and revitalizing all aspects of the Lone Star State—work, school, entertainment, and culture; and

WHEREAS, also on April 17, 2020, I issued Executive Order GA-16 to generally continue through April 30, 2020, the same social-distancing restrictions and other obligations for Texans according to federal guidelines, but also to offer a safe, strategic first step to Open Texas, including permitting retail pick-up and delivery services; and

WHEREAS, I subsequently issued Executive Order GA-18 on April 27, 2020, to expand the services that are reopened in Texas, including allowing in-store retail and dine-in restaurant services at establishments operating within specific capacity limits; and

WHEREAS, as normal business operations resume, everyone must act safely, and to that end Executive Order GA-18 and this executive order provide that all persons should follow the health protocols recommended by DSHS, which whenever achieved will mean compliance with the minimum standards for safely reopening, but which should not be used to fault those who act in good faith but can only substantially comply with the standards in light of scarce resources and other extenuating COVID-19 circumstances; and

WHEREAS, Texas must continue to protect lives while restoring livelihoods, both of which can be achieved with the expert advice of medical professionals and business leaders; and

WHEREAS, the “governor is responsible for meeting … the dangers to the state and people presented by disasters” under Section 418.011 of the Texas Government Code, and the legislature has given the governor broad authority to fulfill that responsibility; and

WHEREAS, under Section 418.012, the “governor may issue executive orders … hav[ing] the force and effect of law;” and

WHEREAS, under Section 418.016(a), the “governor may suspend the provisions of any regulatory statute prescribing the procedures for conduct of state business … if strict compliance with the provisions … would in any way prevent, hinder, or delay necessary action in coping with a disaster;” and

WHEREAS, under Section 418.017(a), the “governor may use all available resources of state government and of political subdivisions that are reasonably necessary to cope with a disaster;” and

WHEREAS, under Section 418.018(c), the “governor may control ingress and egress to and from a disaster area and the movement of persons and the occupancy of premises in the area;” and

WHEREAS, under Section 418.173, failure to comply with any executive order issued during the COVID-19 disaster is an offense punishable by a fine not to exceed $1,000, confinement in jail for a term not to exceed 180 days, or both fine and confinement.

NOW, THEREFORE, I, Greg Abbott, Governor of Texas, by virtue of the power and authority vested in me by the Constitution and laws of the State of Texas, do hereby order the following on a statewide basis effective immediately, and continuing through May 19, 2020, subject to extension based on the status of COVID-19 in Texas and the recommendations of the Governor’s Strike Force to Open Texas, the White House Coronavirus Task Force, and the CDC:

In accordance with guidance from DSHS Commissioner Dr. Hellerstedt, and to achieve the goals established by the President to reduce the spread of COVID-19, every person in Texas shall, except where necessary to provide or obtain essential services or reopened services, minimize social gatherings and minimize in-person contact with people who are not in the same household.  People over the age of 65, however, are strongly encouraged to stay at home as much as possible; to maintain appropriate distance from any member of the household who has been out of the residence in the previous 14 days; and, if leaving the home, to implement social distancing and to practice good hygiene, environmental cleanliness, and sanitation.

“Essential services” shall consist of everything listed by the U.S. Department of Homeland Security (DHS) in its Guidance on the Essential Critical Infrastructure Workforce, Version 3.0 or any subsequent version, plus religious services conducted in churches, congregations, and houses of worship.  Other essential services may be added to this list with the approval of the Texas Division of Emergency Management (TDEM).  TDEM shall maintain an online list of essential services, as specified in this executive order and any approved additions.  Requests for additions should be directed to TDEM at EssentialServices@tdem.texas.gov or by visiting the TDEM website at www.tdem.texas.gov/essentialservices

“Reopened services” shall consist of the following to the extent they are not already “essential services:”

  1. Retail services that may be provided through pick-up, delivery by mail, or delivery to the customer’s doorstep. 
  2. In-store retail services, for retail establishments that operate at up to 25 percent of the total listed occupancy of the retail establishment.
  3. Dine-in restaurant services, for restaurants that operate at up to 25 percent of the total listed occupancy of the restaurant; provided, however, that
    1. this applies only to restaurants that have less than 51 percent of their gross receipts from the sale of alcoholic beverages;
    2. the occupancy limits do not apply to customers seated in outdoor areas of the restaurant; and
    3. valet services are prohibited except for vehicles with placards or plates for disabled parking.
  4. Movie theaters that operate at up to 25 percent of the total listed occupancy of any individual theater for any screening.
  5. Shopping malls that operate at up to 25 percent of the total listed occupancy of the shopping mall; provided, however, that within shopping malls, the food-court dining areas, play areas, and interactive displays and settings must remain closed.
  6. Museums and libraries that operate at up to 25 percent of the total listed occupancy; provided, however, that
    1. local public museums and local public libraries may so operate only if permitted by the local government, and
    2. any components of museums or libraries that have interactive functions or exhibits, including child play areas, must remain closed.
  7. Services provided by an individual working alone in an office, effective until 12:01 a.m. on Monday, May 18, 2020, when this single-person office provision is superseded by the expanded office-based services provision set forth below.
  8. Golf course operations.
  9. Local government operations, including county and municipal governmental operations relating to permitting, recordation, and document-filing services, as determined by the local government.
  10. Wedding venues and the services required to conduct weddings; provided, however, that for weddings held indoors other than at a church, congregation, or house of worship, the facility may operate at up to 25 percent of the total listed occupancy of the facility.
  11. Wedding reception services, for facilities that operate at up to 25 percent of the total listed occupancy of the facility; provided, however, that the occupancy limits do not apply to the outdoor areas of a wedding reception or to outdoor wedding receptions.
  12. Starting at 12:01 a.m. on Friday, May 8, 2020:
    1. Cosmetology salons, hair salons, barber shops, nail salons/shops, and other establishments where licensed cosmetologists or barbers practice their trade; provided, however, that all such salons, shops, and establishments must ensure at least six feet of social distancing between operating work stations.
    2. Tanning salons; provided, however, that all such salons must ensure at least six feet of social distancing between operating work stations.
    3. Swimming pools; provided, however, that (i) indoor swimming pools may operate at up to 25 percent of the total listed occupancy of the pool facility; (ii) outdoor swimming pools may operate at up to 25 percent of normal operating limits as determined by the pool operator; and (iii) local public swimming pools may so operate only if permitted by the local government.
  13. Starting at 12:01 a.m. on Monday, May 18, 2020:

a.   Services provided by office workers in offices that operate at up to the greater of (i) five individuals, or (ii) 25 percent of the total office workforce; provided, however, that the individuals maintain appropriate social distancing.

b.   Manufacturing services, for facilities that operate at up to 25 percent of the total listed occupancy of the facility.

c.   Gyms and exercise facilities and classes that operate at up to 25 percent of the total listed occupancy of the gym or exercise facility; provided, however, that locker rooms and shower facilities must remain closed, but restrooms may open.

  1. For Texas counties that have filed with DSHS, and are in compliance with, the requisite attestation form promulgated by DSHS regarding five or fewer cases of COVID-19, those in-store retail services, dine-in restaurant services, movie theaters, shopping malls, museums and libraries, indoor wedding venues, wedding reception services, swimming pools, services provided by office workers in offices of more than five individuals, manufacturing services, and gyms and exercise facilities and classes, as otherwise defined and limited above, may operate at up to 50 percent (as opposed to 25 percent).
  2. Such additional services as may be enumerated by future executive orders or proclamations by the governor.

The conditions and limitations set forth above for reopened services shall not apply to essential services.  The total listed occupancy limits described above refer to the maximum occupant load set by local or state law, but for purposes of this executive order, staff members are not included in determining operating levels except for non-essential manufacturing service providers and services provided by office workers.  Notwithstanding anything herein to the contrary, the governor may by proclamation identify any county or counties in which reopened services are thereafter prohibited, in the governor’s sole discretion, based on the governor’s determination in consultation with medical professionals that only essential services should be permitted in the county, including based on factors such as an increase in the transmission of COVID-19 or in the amount of COVID-19-related hospitalizations or fatalities.

In providing or obtaining essential services or reopened services, all persons (including individuals, businesses and other organizations, and any other legal entity) should use good-faith efforts and available resources to follow the minimum standard health protocols recommended by DSHS, found at www.dshs.texas.gov/coronavirus.  All persons should also follow, to the extent not inconsistent with the DSHS minimum standards, the Guidelines from the President and the CDC, as well as other CDC recommendations.  Individuals are encouraged to wear appropriate face coverings, but no jurisdiction can impose a civil or criminal penalty for failure to wear a face covering.  Nothing in this executive order or the DSHS minimum standards precludes requiring a customer wishing to obtain services to follow additional hygiene measures. 

Religious services should be conducted in accordance with the joint guidance issued and updated by the attorney general and governor. 

People shall avoid visiting bars, massage establishments, tattoo studios, piercing studios, sexually oriented businesses, or interactive amusement venues such as bowling alleys, video arcades, amusement parks, water parks, or splash pads, unless these enumerated establishments or venues are specifically added as a reopened service by proclamation or future executive order of the governor.  Notwithstanding anything herein to the contrary, the governor may by proclamation add to this list of establishments or venues that people shall avoid visiting.  To the extent any of the establishments or venues that people shall avoid visiting also offer reopened services permitted above, such as restaurant services, these establishments or venues can offer only the reopened services and may not offer any other services.  The use of drive-thru, pickup, or delivery options for food and drinks remains allowed and highly encouraged throughout the limited duration of this executive order. 

This executive order does not prohibit people from accessing essential or reopened services or engaging in essential daily activities, such as going to the grocery store or gas station; providing or obtaining other essential or reopened services; visiting swimming pools, parks, beaches, rivers, or lakes; hunting or fishing; or engaging in physical activity like jogging, bicycling, or other outdoor sports, so long as the necessary precautions are maintained to reduce the transmission of COVID-19 and to minimize in-person contact with people who are not in the same household.

In accordance with the Guidelines from the President and the CDC, people shall not visit nursing homes, state supported living centers, assisted living facilities, or long-term care facilities unless to provide critical assistance as determined through guidance from the Texas Health and Human Services Commission (HHSC).  Nursing homes, state supported living centers, assisted living facilities, and long-term care facilities should follow infection control policies and practices set forth by the HHSC, including minimizing the movement of staff between facilities whenever possible.

In accordance with the Guidelines from the President and the CDC, schools shall remain temporarily closed to in-person classroom attendance by students and shall not recommence before the end of the 2019-2020 school year, except that a student (accompanied by an adult if needed) may, as allowed by the school consistent with the minimum standard health protocols found in guidance issued by the Texas Education Agency (TEA), visit his or her school campus (a) for limited non-instructional administrative tasks such as cleaning out lockers, collecting personal belongings, and returning school items like band instruments and books; or (b) for graduating seniors, to complete post-secondary requirements that cannot be accomplished absent access to the school facility and its resources, excluding any activity or assessment which can be done virtually.  Public education teachers and staff are encouraged to continue to work remotely from home if possible, but may return to schools to conduct remote video instruction, as well as perform administrative duties, under the minimum standard health protocols found in guidance issued by the TEA.  Private schools and institutions of higher education should establish similar standards to allow teachers and staff to return to schools to conduct remote video instruction and perform administrative duties when it is not possible to do so remotely from home.  Notwithstanding anything herein to the contrary, schools may conduct graduation ceremonies consistent with the minimum standard health protocols found in guidance issued by the TEA.  Nothing in this executive order, the DSHS minimum standards, or the joint guidance issued and updated by the attorney general and governor precludes churches, congregations, and houses of worship from using school campuses for their religious services or other allowed services.

This executive order shall supersede any conflicting order issued by local officials in response to the COVID-19 disaster, but only to the extent that such a local order restricts essential services or reopened services allowed by this executive order, allows gatherings prohibited by this executive order, or expands the list of essential services or the list or scope of reopened services as set forth in this executive order.  I hereby suspend Sections 418.1015(b) and 418.108 of the Texas Government Code, Chapter 81, Subchapter E of the Texas Health and Safety Code, and any other relevant statutes, to the extent necessary to ensure that local officials do not impose restrictions in response to the COVID-19 disaster that are inconsistent with this executive order, provided that local officials may enforce this executive order as well as local restrictions that are consistent with this executive order.

This executive order supersedes Executive Order GA-18, but does not supersede Executive Orders GA-10, GA-13, GA-17, GA-19, or GA-20.  This executive order shall remain in effect and in full force until 11:59 p.m. on May 19, 2020, unless it is modified, amended, rescinded, or superseded by the governor.

Given under my hand this the 5th day of May, 2020. 

Governor Greg Abbott

https://gov.texas.gov/news/post/governor-abbott-issues-executive-order-to-expand-openings-of-certain-businesses-and-activities

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Governor Abbott Announces Phase One To Open Texas

Governor Abbott Announces Phase One To Open Texas, Establishes Statewide Minimum Standard Health Protocols

April 27, 2020 | Austin, Texas | Press Release

Creates Statewide Contact Tracing Program

Issues Special Guidance For Texans Over 65, Nursing Homes

Governor Greg Abbott today announced the first phase of the State of Texas’ ongoing plan to safely and strategically open Texas while minimizing the spread of COVID-19. Under Phase I, certain services and activities are allowed to open with limited occupancy, and the Texas Department of State Health Services (DSHS) is issuing minimum standard health protocols for all businesses and individuals to follow. The Governor also outlined special guidance for Texans over 65 and detailed a comprehensive mitigation plan for nursing homes in Texas. The Governor also announced a statewide testing and tracing program developed by DSHS that will help public health officials quickly identify and test Texans who contract COVID-19 and mitigate further spread of the virus. 

The Governor’s announcement is accompanied by Texans Helping Texans: The Governor’s Report to Open Texas. This detailed report, available on the strike force website, helps Texans understand phase one by outlining the new protocols, guidance, and recommendations. The report also includes a series of Open Texas Checklists that outline DSHS’ minimum standard health protocols for all Texans.

https://gov.texas.gov/news/post/governor-abbott-announces-phase-one-to-open-texas-establishes-statewide-minimum-standard-health-protocols

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SBA EIDL Available for Agricultural Businesses

SBA to Make Economic Injury Disaster Loans Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic

Release Date:  Monday, May 4, 2020 Release Number:  20-38 Contact:  Press_Office@sba.gov, (202) 205-7036

WASHINGTON – U.S. Small Business Administration Administrator Jovita Carranza announced today that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by the President one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the Coronavirus (COVID-19) pandemic.

“For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” said Administrator Carranza. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains.”

Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). Eligible agricultural businesses must have 500 or fewer employees.

The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.

For more information, please visit: www.sba.gov/Disaster.

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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov

https://www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/sba-make-economic-injury-disaster-loans-available-us-agricultural-businesses-impacted-covid-19?utm_medium=email&utm_source=govdelivery

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Current EIDL status (5-6-20)

from SBA.gov:

Notice: New Eligibility for Economic Injury Disaster Loan and Advance

Eligible agricultural businesses may apply for the Loan Advance here.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. 

SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.

The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.

  • Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
  • SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.

At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.

https://www.sba.gov/page/disaster-loan-applications

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Forbes – Ten Things We Need To Know About Paycheck Protection Program Loan Forgiveness

Clients have applied and are now being approved for and receiving PPP Loan funds. Now what? There are a lot of details to pay attention to and rules to follow. This is an interesting article on forbes.com written by Tony Nitti / Senior Contributor, titled Ten Things We Need To Know About Paycheck Protection Program Loan Forgiveness.

https://www.forbes.com/sites/anthonynitti/2020/04/15/ten-things-we-need-to-know-about-paycheck-protection-program-loan-forgiveness/#584577ed3291

The ten issues it addresses are:

#1: What does it mean when it says “costs incurred and payments made” within the 8-week covered period will be forgiven?

#2. How do the two “covered periods” interact?

#3. Are payments made with forgiven funds deductible?

#4. Can a business pay interest on non-mortgage debt during the covered period and have it forgiven?

#5. Can self-employed taxpayers have mortgage interest/rent/utilities forgiven, or can’t they?

#6:  What are we doing about federal income tax withholding and payroll taxes?

#7: Can a business have self-rental payments forgiven?

#8: Can someone explain how we determine the required reduction in forgiveness amount if a business cuts employees?

#9: How does the reduction in forgiveness caused by salary reduction work?

#10: Who makes the call?

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EIDL reopened for Agricultural Businesses Only

https://www.usda.gov/media/press-releases/2020/05/04/secretary-perdue-statement-economic-injury-disaster-loans-being

Secretary Perdue Statement on Economic Injury Disaster Loans Being Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic

Release & Contact Info

Statement Release No. 0239.20

Contact: USDA Press
Email: press@oc.usda.gov

WASHINGTON, D.C., May 4, 2020 – U.S. Department of Agriculture Secretary Sonny Perdue today applauded the announcement that agricultural producers, for the first time, are now eligible for the Small Business Administration (SBA)’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs.

“America’s farmers, ranchers, and producers need the same help that other American businesses need during this unprecedented time,” said Secretary Perdue. “This significant new authority signed by President Trump will make a tremendous difference for America’s agricultural community.”

SBA’s EIDL portal has been closed since April 15. However, the Agency is able to reopen the portal today, in a limited capacity, as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, which was signed into law by the President one week ago, provided additional critical funding for farmers and ranchers affected by the Coronavirus (COVID-19) pandemic.

In order to help facilitate this important change to EIDL Loan and EIDL Advance assistance eligibility, SBA is re-opening the Loan and Advance application portal to agricultural enterprises only. For agricultural producers that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted prior to April 15 will be processed on a first-in, first-out basis.

For more information, please visit: www.sba.gov/disaster.

Also: https://www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/sba-make-economic-injury-disaster-loans-available-us-agricultural-businesses-impacted-covid-19

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How Does PPP Loan Forgiveness Work for Self-Employed?

How Does PPP Loan Forgiveness Work for Self-Employed?

Loan forgiveness for PPP loans for companies is generally, easily understood in concept. But how does loan forgiveness work for the self-employed?

We suggest you talk directly with the bank that approved your PPP loan for how to apply for and document for your loan forgiveness. But briefly, the internet and its accounting experts have offered answers:

https://www.google.com/search?source=hp&ei=sFywXqn-AYWWtQXbvLWwCQ&q=how+is+a+self+employed+ppp+loan+forgiveness+rules&oq=how+is+a+self-employed+ppp+loan+forgiven

Forgiveness for self-employed individuals
You are entitled to use the PPP loan to replace lost compensation due to the impacts of COVID-19. However, you are not entitled to use the full amount to replace pay. Eight weeks worth of your 2019 net profit will be eligible for forgiveness.

https://bench.co/blog/operations/ppp-loan-forgiveness/

and

Payroll and Forgiveness For the Self Employed
The SBA provided additional guidance on April 14, 2020 regarding PPP for self-employed individuals. What follows is a brief summary. If you are self-employed and File IRS Form 1040 Schedule C, we recommend you read the full guidance

First, self-employed individuals without any employees who file IRS Form 1040 Schedule C calculate payroll differently. Use the net profit for the business from 2019 as reported on line 31 of Schedule C. Using up to $100,000 of net profit, divide that amount by 12 to get the average monthly net profit, then multiply by 2.5 to get the maximum loan amount. (Note you do not have to file your 2019 tax return before you apply, but the SBA says you must complete it.) 

For forgiveness, that same document provides the following guidance: 
“The amount of loan forgiveness can be up to the full principal amount of the loan plus accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount spent over the covered period on: 
• Payroll costs including salary, wages, and tips, up to $100,000 of annualized pay per employee (for eight weeks, a maximum of $15,385 per individual), as well as covered benefits for employees (but not owners), including health care expenses, retirement contributions, and state taxes imposed on employee payroll paid by the employer (such as unemployment insurance premiums); 
• Owner compensation replacement, calculated based on 2019 net profit … with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit, but excluding any qualified sick leave equivalent amount for which a credit is claimed under section 7002 of the Families First Coronavirus Response Act (FFCRA) or qualified family leave equivalent amount for which a credit is claimed under section 7004 of FFCRA; 
• Payments of interest on mortgage obligations on real or personal property incurred before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business mortgage payments); 
• Rent payments on lease agreements in force before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business rent payments); and 
• Utility payments under service agreements dated before February 15, 2020 to the extent they are deductible on Form 1040 Schedule C (business utility payments). 


That’s a lot of text, but details matter here. Note in particular that the SBA says the owner’s compensation portion of the loan here is limited when it comes to forgiveness: 

“It is appropriate to limit the forgiveness of owner compensation replacement for individuals with self-employment income who file a Schedule C to eight weeks’ worth (8 divided by 52) of 2019 net profit…This is because many self-employed individuals have few of the overhead expenses that qualify for forgiveness under the Act. For example, many such individuals operate out of either their homes, vehicles, or sheds and thus do not incur qualifying mortgage interest, rent, or utility payments. As a result, most of their receipts will constitute net income.”  

If that leaves you confused as to whether a self-employed individual can or cannot include qualified mortgage interest, rent or utility expenses in their forgiveness calculation you’re not alone. Tony Nitti, CPA, has written in a detailed Forbes article that “I would argue that the additional costs – mortgage interest, rent, utilities – are still eligible for forgiveness” but goes on to state it’s not completely clear. 

As always, seek guidance for a Certified Public Accountant.

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City of Dallas Small Business Continuity Fund

(April 30, 2020) The City of Dallas officially announced today the Small Business Continuity Fund.

https://www.dallasecodev.org/565/Small-Business-Continuity-Fund

Beginning on May 4th, 2020, the Office of Economic Development will begin accepting applications for the Small Business Continuity Fund (SBCF) program. That application will be accessible at www.dallascityhall.com. The SBCF program is funded through the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) funding, and is available to low-to-moderate income (LMI) microenterprise business owners (less than 5 employees) or small businesses with 50 or fewer employees that retain LMI workers. Businesses must be located in the City of Dallas. Businesses can apply for either a $10,000 maximum grant or a $50,000 maximum loan, but may not apply for both. Businesses must demonstrate at least a 25% reduction in sales/revenue as a result of the COVID-19 virus. Due to CDBG program requirements, non-profits are not eligible for this funding.Applications will be accepted from May 4th to May 11th, 2020. After May 11th, a lottery will conducted to select businesses for funding. Businesses must submit a complete application to be eligible for selection in the lottery, and must be able to provide complete documentation to a third party provider prior to any execution of a grant or loan. If you think your business might be eligible, please check https://www.surveymonkey.com/r/FTK5GCS. For more information, please review the FAQs document or email SBCF@dallascityhall.com.

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Resource List from America’s SBDC

America’s SBDC (www.AmericasSBDC.org) represents America’s nationwide network of Small Business Development Centers (SBDCs). America’s SBDC is the parent brand and the national association recognized by the federal government, by statute, as the representative of America’s Small Business development center (SBDC) network. America’s SBDC has recently shared a very helpful resource list, that we in turn, want to share with you.

Resource Highlights
Free Virtual SBDC Coaching Sessions with Google Available in Select Locations: Arizona, California, Colorado, Georgia, Iowa, Massachusetts, New York, North Carolina, Nevada, Ohio, Pennsylvania, South Carolina, Tennessee, Texas   Our Partner Grow with Google is offering free 30 minute virtual 1:1 coaching sessions with a Googler to discuss either Google Ads, Google Analytics, Google My Business, or Google Productivity Tools (e.g. GSuite, Calendar, Gmail, and Hangouts Meet). For now, they ask that you please sign up for only two coaching sessions to ensure they can support as many organizations as possible. Also it’s best to sign-up for a coaching session that is at least 24 hours away so the coaches have enough time to prepare for your session. Click here ( https://files.constantcontact.com/25a896f6001/e60f1ae3-6e1f-45ec-a3ae-e6b621fc94e0.pdf ) to learn more.

Webinar: How To Become A Seller On The Amazon Business Market Place Thursday, April 30th at 1 pm ET/10 am PT The MBDA Business Center invites you to an overview of the Minority Business and Technology Initiative (MBT Initiative). This is a collaboration between Amazon Business and the U.S. Department of Commerce, Minority Business Development Agency (MBDA) that seeks to accelerate the inclusion of minority owned enterprises in e-commerce and to improve the use of digital technology for domestic and global sales. Special guest: Senator Marco Rubio To register for this webinar or learn about more learning opportunities & resources from Amazon, click here. ( https://www.amazon.com/b/?node=18014077011 )

Betterfin Launches ReadyRelief to Assist in Securing Stimulus Funds Checkout this easy-to-use, consumer facing platform for small business owners and a white-label version for SBDC advisors to use with small business clients. Click here ( https://www.betterfin.com/blog/readyrelief ) to learn more.

eBay Launches “Up and Running” The new program was created to help new small businesses transitioning to e-commerce through the COVID-19 crisis. The program is a pledge of up to $100 million in support for small businesses across North America. The program includes: Free basic eBay store subscription and waive selling fees for 3 months500 free listingsGuidance and resources needed to run business on eBay Click here ( https://pages.ebay.com/upandrunning/ ) to learn more.

Additional Resources

SBDC Webinars
https://calendar.google.com/calendar/embed?color=%239fe1e7&src=asbdcleadershipinstitute@gmail.com
SBDC Materials
https://drive.google.com/drive/folders/1PP64JtOjs08hKKNAAcr4rGFLMb1PsQeS
Resiliency Guide
https://americassbdc.org/protect-your-business/
Thryv Study
https://corporate.thryv.com/news/small-businesses-need-re-opening-survive-national-study-thryv-inc-americas-sbdc-shows/
Partner Resources
https://americassbdc.org/covid19-partner-resources/
Partner Offers
https://americassbdc.org/resources/sponsor-offers/
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Update 4-25 on EIDL & PPP

In a press release, this Friday afternoon, the SBA announced: “The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of any eligible borrower. This will ensure that SBA has properly coded the system to account for changes made by the legislation.”
(The press release did not include any specific information or details about the re-opening and resumption of EIDL.)
The new bill adds $50 billion into the Emergency Economic Injury Disaster (EIDL) loan program. There is another $10 billion solely for the EIDL Loan Advance.


The SBA.gov website further clarified:
Additional Funding Notice: The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT. With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis. We will provide further information on the availability of the EIDL portal to receive new applications (including those from agricultural enterprises) as soon as possible.
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

We believe this EIDL portal delay is due to having to modify the application form and software. The new bill added new provisions and criteria.