COVID-19 INFORMATION & RESOURCES
As the world has changed with Covid-19, VCC has diligently monitored the legal landscape to ensure our clients are well informed on how to best take advantage of the various aid programs. You may view general information below, but please contact us for guidance on how to navigate these programs.
Congress passed the second round of COVID-19 relief on December 21, 2020. This legislation, referred to as PPP2, provides more than $300 billion in additional aid for small businesses.
EIDL Grant & PPP Expense Updates
As part of the PPP2 legislation, rules were revised so that the EIDL advance will NOT be deducted from PPP1 forgiveness. In addition, the restrictions that made PPP1 funds ineligible for tax-deductible expenses were removed. This is great news for all small business owners!
You may have seen the news stories about the Freedom of Information Act that resulted in PPP loan details becoming public records. Every company that received a loan and the loan amounts are now part of the public domain. Along with this information, there has been an increase in cybercrimes committed by scammers offering to help people with their PPP forgiveness application. They may offer to complete these applications for the business (for an unnecessary fee) or try to obtain confidential business information that they can then exploit in other ways. Please do not fall for this scam!
Employee Retention Tax Credit (ERTC)
If you received PPP funding in 2020, the new PPP2 legislation removed the prohibition on taking the Employee Retention Tax Credit (ERTC). Many businesses will be eligible for significant credits, from payroll paid in 2020, not covered by PPP. Talk to your trusted business advisors about your eligibility for 2020 & 2021 ERTC.
Deductibility of PPP Dollars forgiven
Congress has corrected previous IRS guidelines that payroll and expenses used for forgiveness in PPP could not also be deducted from gross income to reduce Net Income. Congress has changed this to allow double dipping. You can use those dollars for forgiveness as well as deduct them as business write-offs against income.