Coronavirus (COVID-19) Resource Center

The Paycheck Protection Program (PPP) established by the CARES Act, is implemented by the Small Business Administration (SBA) with support from the Department of the Treasury. This program provides small businesses with funds to pay up-to-24 weeks of payroll costs including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020 and certain supplier costs and expenses for operations. The SBA will forgive PPP loans if all employee retention criteria are met, and the funds are used for eligible expenses.

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) signed into law on December 27, 2020 provides $284 billion for new PPP loans, revises certain PPP rules and loan requirements and reopens the program for eligible borrowers that did not apply for a (First Draw) PPP Loan prior to the program’s termination on August 8, 2020. Certain existing PPP borrowers may also reapply if they previously returned all or some of their First Draw PPP Loan or did not accept the full amount for which they were eligible. [read more]

First Draw PPP Loans

» Top-Line Overview of First Draw PPP (1/8/21)

» How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide – By Business Type (1/17/21)

» Borrower Application Form (revised 1/8/21) for First Draw PPP loans

The Economic Aid Act also now allows certain eligible borrowers who previously received a First Draw PPP loan in 2020 to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. [read more]

Second Draw PPP Loans

» Top-Line Overview of Second-Draw PPP (1/8/21)

» Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide (1/19/21)

» Second Draw Borrower Application Form (1/8/21)

Latest Developments

» February 22, 2021 | President Biden announced changes to SBA’s PPP loan program. Specifically, starting Feb. 24, the SBA will establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. SBA also announced other changes to open the PPP to more underserved small businesses than ever before. [read more]

» January 22, 2021 | The IRS provided guidance for PPP borrowers who included wages paid in the 2nd and 3rd quarters of 2020 as payroll costs towards forgiveness, and who were subsequently denied forgiveness on their loan. Those borrowers can now claim the employee retention credit related to those qualified wages on their 4th quarter 2020 Form 941. [read more]

» January 19, 2021 | The SBA posted a new interim final rule on Loan Forgiveness Requirements and Loan Review Procedures as Amended by the Economic Aid Act, consolidating prior rules related to forgiveness and reviews of PPP loans and incorporating changes made by the Economic Aid Act. 

The SBA also posted updated loan forgiveness application and instructions: 

• PPP Loan Forgiveness Application Form 3508 (revised 1/19/21)
• PPP Loan Forgiveness Application Form 3508EZ (revised 1/19/21)
• PPP Loan Forgiveness Application Form 3508S (revised 1/19/21) for borrowers who received a PPP loan of $150,000 or less

The SBA also posted a Borrower’s Disclosure of Certain Controlling Interests form to be used disclosure whether a covered individual directly or indirectly held a controlling interest in a borrower at the time their PPP loan application was submitted to the lender.

» January 15, 2021 | The SBA issued three Procedural Notices this week to their employees and PPP lenders, providing guidance on First Draw PPP Loan increases; Resubmissions of PPP borrower loan forgiveness applications using the updated Form 3508S; and the effects of PPP excess loan amount errors on borrowers and lenders.      

» January 13, 2021 | The SBA will reopen the PPP loan portal to eligible lenders with $1 billion or less in assets for First and Second Draw PPP Loan applications on Friday, January 15, 2021 at 9 am. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to start submitting First and Second Draw PPP Loan applications to SBA. [read more]

» January 8, 2021 | The SBA and the Treasury Department announced that the PPP will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans starting on Monday, January 11 and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. [read more]

» January 6, 2021 | The SBA posted a new interim final rule on Second Draw Loans, providing guidance on terms and conditions specific to Second Draw PPP Loans, including eligibility requirements and the application process. [read more]

» January 6, 2021 | The SBA posted a new interim final rule on the Paycheck Protection Program as Amended by the Economic Aid Act, incorporating the revisions made to certain PPP requirements by the Economic Aid Act, and consolidating the interim final rules (and important guidance) issued to date governing the PPP. [read more]

» January 6, 2021 | The Treasury Department and IRS issued Rev. Rul. 2021-02 today, reflecting changes made by the COVID-related Tax Relief Act of 2020, in connection with the deductibility of otherwise eligible expenses, paid with forgiven PPP loan funds. 

» The Taxpayer Certainty and Disaster Relief Act of 2020 (Taxpayer Certainty Act) extends the employee retention tax credit (ERTC) through June 30, 2021 and expands various provisions of the credit. 

Under the CARES Act, the ERTC was 50% of the first $10,000 in qualified wages paid per employee for all of 2020 (capped at $5,000 per employee). Starting Jan. 1, 2021, the ERTC will be 70% of the first $10,000 of qualified wages paid per employee per quarter (capped at $14,000 per employee through June 30th). The Taxpayer Certainty Act also expands which employers are eligible. Under the CARES Act, the ERTC applied only to an employer who experienced a significant decline in gross receipts of more than 50% in a quarter in 2020 compared to the same quarter in 2019. Starting Jan. 1, 2021, eligibility is now expanded to include employers who experienced a decline in gross receipts 20% or more. 

In addition, the employee threshold to claim the ERTC has been raised to 500 employees from 100 employees. Now, employers with 500 or fewer employees can claim the credit for qualified wages paid to employees irrespective of whether the employee is providing services. The Taxpayer Certainty Act also retroactively allows eligible employers who received a PPP loan to now claim the ERTC as well, for qualified wages that were not paid with forgiven PPP loans. 

Read our -NEW- blog post discussing all the details of the Employee Retention Tax Credit that can be claimed in 2020 and 2021. [read more]

Latest Developments

» January 28, 2021 | The IRS posted guidance on their website irs.gov, indicating that an employer that is eligible for the employee retention credit (ERC) can claim the ERC, even if the employer has received a PPP loan. [read more]

» January 26, 2021 | The IRS issued IR-2021-21, urging employers to take advantage of the newly-extended employee retention credit. The News Release also provides details on the changes made by the Taxpayer Certainty Act, that are effective Jan. 1, 2021. 

» January 22, 2021 | The IRS provided guidance for PPP borrowers who included wages paid in the 2nd and 3rd quarters of 2020 as payroll costs towards forgiveness, and who were subsequently denied forgiveness on their loan. Those borrowers can now claim the employee retention credit related to those qualified wages on their 4th quarter 2020 Form 941. [read more]

The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act provides $20 billion to reopen the $10,000 EIDL Grant program. The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation and resiliency.

Advance funds of up to $10,000 will only be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000 in 2020, or those who applied but received no funds due to lack of available program funding.

To be eligible, applicants must have 300 or fewer employees, be located in a low-income community and have experienced a 30% or more reduction in revenue during any 8-week period beginning on March 2, 2020 or later.

Applicants must wait until they receive an email invite from the SBA to apply for the new Targeted EIDL Advance. 

» February 1, 2021 | Targeted EIDL Advance Frequently Asked Questions

More information on the Targeted EIDL Advance grant for qualifying small business is available here on the SBA.gov website. 

The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act authorizes $15 billion for the SBA to make grants to eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators or talent representatives who demonstrate a 25% reduction in revenue in any quarter of 2020 compared the same quarter in 2019.

Eligible applicants may qualify for Shuttered Venue Operators Grants (SVOG) equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applicants with up to 50 full-time employees. Application forms and additional guidelines will be posted by SBA in the coming weeks.

Read our -NEW- blog post discussing all the details of the SVOG program, based on the legislation and guidance released to-date by the SBA. [read more]

More information on the Shuttered Venue Operators Grants is available here on the SBA.gov website. 

The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act provides $3.5 billion to resume the government payment of monthly principal and interest on small business loans guaranteed by the SBA under the 7(a), 504, and Microloan programs.

Borrowers with loans approved by the SBA prior to March 27, 2020 will receive an additional three months of payments starting in February 2021. Going forward, these payments will be capped at $9,000 per borrower per month.  

After the three-month period described above, certain borrowers will receive an additional five months of payments. This includes borrowers that, according to the records of SBA, are assigned a NAICS code beginning with 61, 71, 72, 213, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812. 

For new loans approved during the period beginning on February 1 and ending on September 30, 2021, SBA will make payments for the 6-month period beginning with the first payment due on the loan after the loan has been moved into a regular servicing status. 

The SBA has issued the following Procedural Notices, to provide guidance on payments authorized by section 1112 of the CARES Act, as amended by section 325 of the Economic Aid Act:

» January 19, 2021 | SBA Procedural Notice 5000-20079, Guidance on the Implementation of the Extension of the Section 1112 Debt Relief Program for the 7(a) and 504 Loan Programs, as Authorized by Section 325 of the Economic Aid Act

» January 19, 2021 | SBA Procedural Notice 5000-20080, Guidance on the Implementation of the Extension of the Section 1112 Debt Relief Program for the Microloan Program, as Authorized by Section 325 of the Economic Aid Act

More information on SBA Debt Relief for small business during the COVID-19 pandemic is available here on the SBA.gov website. 

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for a second Economic Impact Payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Most people who have an adjusted gross income for 2019 of up to $75,000 for individuals and up to $150,000 for married couples filing joint returns, will receive the full amount of the second payment. For filers with income above those amounts, the payment amount will be reduced. If you don’t get the full amount of the Economic Impact Payments, you may be eligible for a Recovery Rebate Credit.

The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of January 4, 2021. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions.

To check the status of both your first and second Economic Impact Payment, use the Get My Payment tool, available in English and Spanish on the IRS.gov website.

The Consolidated Appropriations Act, 2021 signed into law by President Trump on December 27, 2020, included the Continued Assistance for Unemployed Workers Act of 2020, which extends the unemployment assistance programs created by the CARES Act, including Federal Pandemic Unemployment Compensation (PUC) payments of $300 per week for an additional eleven weeks, to March 14, 2021. 

Click here for more information on our website about COVID-19 unemployment assistance programs extended by the new law. 

The Consolidated Appropriations Act, 2021 signed into law by President Trump on December 27, 2020, includes both the COVID-Related Tax Relief Act of 2020 and the Taxpayer Certainty and Disaster Relief Act of 2020 which provide a number of new tax provisions, as well as extensions of certain CARES Act tax provisions and other temporary and permanent tax extensions. [read more]

New Guidance

» More Time to Withhold and Pay the Employee Share of the Social Security Tax deferred in 2020 | The IRS issued  Notice 2021-11, Additional Relief with Respect to Employment Tax Deadlines Applicable to Employers Affected by the Ongoing, Coronavirus (COVID-19) Disease 2019 Pandemic on Jan. 19, 2021 to provide more guidance to employers about paying the employee share of social security tax deferred between Sep. 1 – Dec. 31, 2020 for eligible employees. [read more]

» Educators Can Now Deduct Out-of- Pocket Expenses for COVID-19 Protective Items | The IRS issued Rev. Proc. 2021-15 to provide guidance to educators related to their unreimbursed expenses for COVID-19 protective items, purchased after Mar. 12, 2020. [read more]