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PPP – Hurry up…
February 9, 2021
PPP and SBA Update
March 1, 2021

Russell Report – Presidents Day

Today is Presidents Day.  It is a federal holiday so don’t expect to see your Tesla stock go up today; the stock market is closed, so you’ll have to wait until tomorrow.  This also makes it a day that your banker doesn’t answer the phone and your mail doesn’t get delivered.  So, let’s take this break in the action to make sure nothing is falling through the cracks.

 

 

For many business owners, this year is off to a blazing fast start.  If it is PPP, your focus has been getting the second draw.  For others, it has been working through the criteria of an Employee Retention Credit as applied through the CARES Act and subsequently through the Taxpayer Certainty and Disaster Tax Relief Act of 2020.  For many small businesses, there is also the California Relief Grant, and recipients find out this week of they were awarded the grant.  Because of the shiny objects of the PPP, ERC, and the CRG, lost in some of this is the California Competes Tax Credit, or CCTC (any more acronyms and I’m putting in a glossary).  Yes, the big guys do benefit – Lockheed Martin got a $29 million tax credit last year, but the little guys can too.  As an example, a small 4 person corporation received a $50,000 tax credit for moving its location but staying in California, and committing to hire 8 new employees over the next 5 years.  For that commitment, the company received an annual $10,000 tax credit for 5 years against the taxes it would have paid to the State; it’s essentially a tax rebate.  There are a lot of caveats but that’s not the point of this email.  The point is to let you know that the next application window opens March 8.  Yes, you have three weeks to figure this out.  Or you can ask me.

 

 

 

Other Deadlines

  • If you got a first round PPP loan, you have at least until June to file for forgiveness with your lender.
    • If you don’t, you start making payments on your new, 1% interest loan.
    • If you received a second draw loan, you still have to file for forgiveness for your first draw, sometime in 2022.
  • Targeted EIDL Advance – notices have gone out to potential recipients to get the balance of the EIDL Advance they received last year.  Pay attention to those SBA emails!!
  • Filing Taxes – last year, the IRS moved the filing deadline back.  Not this year.  Right about now, your CPA is ordering their 50 pounds of coffee and 12 cases of Red Bull to get them through the next 60 days.
  • PPP Second Draw – March 31.  If you qualify, get your application in NOW.  I estimate funds will run out around March 15.

 

 

Finally…

  • Presidents Day started in 1879 as a celebration of Washington’s Birthday.
  • In 1971, because everyone likes a 3-day weekend, the holiday was moved to the third Monday in February.
  • Not to be outdone, New Mexico observes Presidents Day on the Friday following Thanksgiving, making it a 4-day weekend.
  • General Washington created the first military badge of merit for the common soldier – the Purple Heart.