Month: August 2021

How Your Small Business Can Qualify For COVID-19 Relief

The United States Senate legislated the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), geared toward providing financial support to the American public and American businesses in light of the economic fallout from the coronavirus (COVID-19) pandemic.

A principal component of the CARES Act is the allowance of $349 billion for small businesses through federally supported loans under an amended and broadened Small Business Administration (SBA) 7(a) loan guaranty program known as the Paycheck Protection Program.

Below, the tax experts at Donohoo Accounting Services address some of the fundamental elements of the CARES Act.

Critical Aspects of the CARES Act

Eligible businesses comprise:

  • Businesses with as many as 500 employees or which meet the appropriate size standard for the industry as stipulated by SBA’s current requirements.
  • Businesses in the food services and accommodation industries that exceed one physical location but contain less than 500 employees at each location.
  • Nonprofit organizations
  • Approved sole proprietors and independent contractors.
  • Loans will be accessible across SBA and Treasury accepted banks, credit unions, and select nonbank lenders.
  • Borrowers can withdraw loans 2.5 times their monthly payroll expenses, not to exceed $10 million.

Which businesses are eligible for the Paycheck Protection Program?

Based on the wording of the bill, typically, any business active on February 15, 2020, with less than or equal to 500 employees (or that meets the appropriate size benchmark for the industry as required by SBA’s existing regulations) qualifies.

What is the maximum loan value that a business can accept through the Paycheck Protection Program?

Each business can accept the lesser of $10 million or a total of 2.5 times the average total monthly payroll expenses for the previous year.

What can a business use loans for?

Businesses can leverage funds from the Program loans to meet costs involving:

  • Payroll costs, including remuneration to employees; disbursements for vacation, family, parental sick or medical leave; payments due to termination; payments necessary for group health care benefits, retirement benefits, and local and state employment taxes
  • Interest payments concerning any mortgage obligations or additional debt obligations sustained prior to February 15, 2020 (excluding any payments or prepayments of principal)
  • Rent
  • Utilities

How does a business apply for a loan under the Paycheck Protection Program

Businesses can visit an authorized SBA 7(a) credit union, bank or lender, apply for a loan and be approved that very day. While there is no cost to apply for the loan, businesses will be charged a fixed interest rate.

What are the terms and conditions of Program loans?

The terms and conditions for a covered loan are identical to the relevant terms and conditions for conventional SBA 7(a) loans.

What documents must a lender require to provide a borrower loan forgiveness?

Documentation that confirms the number of full-time employees on payroll and pay rates for the periods designated under the reduction for loan forgiveness above. For example:

  • Payroll tax filings to the IRS, state payroll and SUTA filing
  • Financial statements corroborating payment on debt obligations sustained prior to the covered period
  • And, any additional documents the SBA may request

Ready to discover what tax credits you or your business qualify for? Call Donohoo Accounting Services today at 513-528-3982 for a FREE consultation! For more tips and our latest updates, check us out on Facebook, Twitter or LinkedIn!

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6 Tips For Working From Home

Because of the need for physical distancing to help stop the spread of COVID-19, many of us are required to work from home. While for some this may be a new challenge in a difficult time, adjusting to working from home can be easily done when armed with the right information helping you quickly develop a routine that helps you stay productive. These tips are designed to help you make the most out of working from home, allowing you to stay safe while staying focused on your work.

Maintain Regular Working Hours

While you may not be required to go into your office, working from home doesn’t mean you should let it disrupt your regularly scheduled work week. Setting a regular schedule with designated working hours helps maintain a healthy work-life balance that can help maintain productivity.

Get Dressed for a Regular Workday

While it may be tempting to work in your pajamas, getting dressed for a regular work day can go a long way in helping you stay focused on your work. Developing a regular morning routine that involves professional grooming habits can help put you in the right mindset for the work day and make you more productive.

Designate Working Space

One of the challenges many people face when working from home is keeping your work life separate from your home life. But designating a specific room or area to work from that’s comfortable, with plenty of natural light can help you stay focused and on task is essential for working from home.

Socialize with Coworkers

While it’s important to maintain social distancing to help stop the spread of the COVID-19 virus, that doesn’t mean you still can’t interact and socialize with your coworkers. While you may be working out of the office texting, emails, phone calls and even video chats help you combat feeling isolated while maintaining personal and professional relationships while you work from home.

Take Regularly Scheduled Breaks

Knowing your company’s break policies can be an essential part of working from home, as taking time away from your computer and phone helps avoid fatigue and keep you focused. Many workplaces offer employees an hour for lunch along with two 15 minute breaks for an eight-hour work day, so make sure to take full advantage of your breaks to give yourself time to relax.

Give Yourself Time to Adjust

Easing into working from home can be difficult and if you’re used to a busy office environment, the adjustment might take longer than you think. While it can feel stressful, frustrating and lonely, don’t be hard on yourself and know that it takes time to adjust.

At Donohoo Accounting Services, we’re also working from home and understand its challenges. From interns to CEOs, adjusting to this new normal is taking its toll on all of us. Whether you’re a business owner or an employee, one thing is certain — we could all use extra attention to our finances. If you haven’t filed your 2019 taxes, give us a call at 513-528-3982 for a free consultation and let us find every deduction possible to reduce your tax burden. For more tips and our latest updates, check us out on Facebook, Twitter or LinkedIn!

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