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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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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.

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PPP for Self-Employed

On Thursday, April 23, the House passed the new appropriation bill previously passed this week by the Senate (update: and signed by the President on Friday). It is expected PPP and EIDL will reopen on Monday, April 27 (but keep checking sba.gov, in case the SBA EIDL application portal opens earlier!).

Update:

In a press release on Friday (4-24) 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 advances.
“The new legislation provides $310 billion in new funding for the Paycheck Protection Program with $30 billion going to small lenders with less than $10 billion in assets and another $30 billion earmarked for small lenders with between $10 billion and $50 billion in assets. This $60 billion set-aside may help mom-and-pop businesses frozen out of round 1 finally obtain loans. The balance, $250 billion of new funding, will go into the regular PPP loan program which, like the set-aside funds, provides forgivable loans of up to $10 million each.” (https://www.investopedia.com/how-to-navigate-the-new-stimulus-plan-and-get-a-ppp-loan-4843031)


The SBA.gov website further clarifies:
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

Dallas Metropolitan SBDC has created a presentation on PPP for Self-Employed for this new category of businesses, that was launched just before monies were depleted. Click to download the PDF.

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City of Dallas COVID19 Small Business Assistance Announced

The City of Dallas announced new financial relief programs for small businesses, along with other programs for residents.

Read More below:

https://www.fox4news.com/news/dallas-council-approves-rental-relief-fund-eviction-pause-small-businesses-assistance

The city also passed a resolution that will provide $5 million in assistance to small businesses hit hard by COVID-19 crisis. The money from the federal CARES Act will be distributed in the form of either $10,000 grants or $50,000 loans.

“Small businesses are the lifeblood of the Dallas economy,” said Dallas Mayor Eric Johnson.

Applications for Dallas businesses also go live on May 4. Owners could get the dollars as early as June 15.

Businesses will be required to retain 80 percent of the workforce they had February 29. The city has not yet released information about where people and businesses can apply for these funds.

More than a million dollars of that funding is specifically directed to historically under-invested communities. It’s intended to be a very thorough process.

Small business relief

The Office of Economic Development is launching a $5 million Small Business Continuity Fund that will provide up to $10,000 in grants and up to $50,000 in low-cost loans to small businesses affected by COVID-19.

The businesses must be able to prove they were in operation for a minimum of six months prior to March 16 must be low to moderate income microbusiness owners and/or businesses that employ or previously employed at least 51 percent LMI workers.

The fund is intended to ensure continued operations of small businesses and job retention by those businesses. The application is expected to go live in May for grants and loans to begin in June.

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Resources:

http://dallasecodev.org/562/COVID-19-Info-for-Small-Businesses