COVID-19 - Resources for You and Your Business

In an effort to keep you updated on the evolving situation surrounding the COVID-19 pandemic, we have created a COVID-19 Resource Center to provide guidance during these unprecedented times. We will do our best to answer your questions and help you understand the potential impact on you and your business – from Paycheck Protection Program (PPP) loan forgiveness to CARES Act accounting information analysis.

We are continuing to closely monitor this situation and will keep you informed as more details become available. If you have any questions, please do not hesitate to contact us.

The CARES Act

On-Demand Webinar: Update on the Paycheck Protection Program’s Loan Forgiveness Application

This on-demand webinar provides a review of the PPP loan forgiveness provisions, clarification on the options for calculating payroll costs, loan forgiveness reductions based on FTEs and salary/wage reductions, answers to Frequently Asked Questions, and loan forgiveness application documentation.

SBA Releases Much-Anticipated PPP Loan Forgiveness Form; Says Additional Details Forthcoming

On Friday, May 15, the Small Business Administration (SBA), in consultation with the Treasury, released an application form and instructions for PPP loan forgiveness. The application has four components: the PPP Loan Forgiveness Calculation Form, PPP Schedule A, the PPP Schedule A Worksheet, and an optional PPP Borrower Demographic Information Form.

SBA Will Now Allow Increased PPP Loans for Partnerships and Seasonal Employers

On Wednesday, May 13, the Small Business Administration (SBA), issued a new Interim Final Rule which authorizes increased PPP loans for partnerships and companies with seasonal employees. It allows PPP lenders to increase existing PPP loans to partnerships – even if the borrower has already received their loan proceeds.

PPP Safe Harbor Repayment Date Now Extended to Monday, May 18, 2020

The Small Business Administration (SBA), in consultation with the Department of the Treasury, has once again extended the PPP safe harbor repayment date. The SBA updated its Paycheck Protection Program Frequently Asked Questions (FAQs) by adding FAQ #47, which states that borrowers who repay their loans in full by Monday, May 18, 2020 will be protected by its recent safe harbor rule.

SBA Issues New Guidance on Good-Faith Certification for PPP Loan Eligibility

The Small Business Administration (SBA), in consultation with the Department of the Treasury, updated its Paycheck Protection Program Frequently Asked Questions (FAQs) by adding FAQ #46, which addresses how the SBA intends to review a borrower’s good-faith certification that their loan was necessary.

SBA EIDL Program Significantly Lowers Loan Amount and Limits New Applications

The Economic Injury Disaster Loan (EIDL) program offers low interest, non-forgivable loans administered by the Small Business Administration (SBA). Historically, this program has been the primary form of federal assistance for businesses experiencing losses from disasters such as hurricanes, tornadoes, and wildfires. However, it gained wider attention after the global pandemic was declared a qualifying disaster in terms of eligibility for the EIDL program.

PPP Safe Harbor Repayment Date Extended to May 14, 2020

On May 5, the Small Business Administration (SBA), in consultation with the Department of the Treasury, updated its Paycheck Protection Program Frequently Asked Questions (FAQs) by adding FAQ #43, which states that borrowers who repay their loans in full by May 14, 2020 will be protected by its recent safe harbor rule. The safe harbor date was previously May 7, 2020.

The Changing PPP Eligibility Rules – How Does a Private Company Respond?

The one thing that all of the private and family-owned companies we serve have in common is limited access to capital. That need could not be greater in this time of crisis. As part of its stimulus program within the CARES Act, the Federal government has provided much-needed funding to businesses via the Paycheck Protection Program. The intended purpose of this program is to provide emergency funding in the form of a forgivable loan to companies so that they can retain workers during this economic crisis. Not so fast.

New IRS Guidance Denies Deduction Related to PPP Loan Forgiveness

Thursday evening, the Internal Revenue Service issued Notice 2020-32 indicating that if loan proceeds under a Payroll Protection Program (PPP) loan are later forgiven, none of the business expenses paid with those funds will be deductible for Federal income tax purposes.

On-Demand Webinar: PPP Loan Forgiveness Update

This on-demand webinar covers frequently-asked questions we received during our previous PPP loan forgiveness webinar, a closer look at last week’s SBA guidance that retroactively impacts PPP eligibility, and strategies to proactively plan for PPP loan forgiveness.

On-Demand Webinar: What You Need to Know About Key Individual Tax Provisions in the CARES Act

This on-demand webinar provides a high level overview of economic impact rebates, retirement plan distribution changes, waiver of required minimum distribution rules, and modifications for charitable contributions, student loans, and medical expenses.

President Trump Signs $484 Billion Bill for Additional PPP and EIDL Funding

President Trump has signed the $484 billion bill passed by the House Thursday afternoon.

House Approves $484 Billion Deal for Additional PPP and EIDL Funding

The House of Representatives overwhelmingly approved the $484 billion bill passed by the Senate on Tuesday and intended to provide additional relief to businesses impacted by the COVID-19 pandemic.

SBA Issues New Guidance That Retroactively Impacts PPP Eligibility

There has been growing concern that many small businesses were unable to borrow under the Paycheck Protection Program (PPP) because funds were quickly depleted by organizations for which the program was not necessarily intended. With Congress and the President poised to approve an additional $310 billion in funding for the PPP, the Small Business Administration has announced new rules to limit the types of borrowers eligible for future loans under the program.

Senate Approves $484 Billion Deal for Much-Needed Additional PPP and EIDL Funding

The Senate has approved a $484 billion bill aimed at providing added relief to businesses impacted by the COVID-19 pandemic. lt includes approximately $310 billion in additional funding for the Paycheck Protection Program (PPP), after the initial $349 billion in funds was quickly depleted. Of the $310 billion, $60 billion is reserved for smaller lenders, including community financial institutions, small insured depository institutions, and credit unions with assets less than $10 billion.

5 Steps You Should Take Right Now if You Are Participating in the PPP Loan Program

Hundreds of our clients have spent the last two weeks preparing applications for loans under the PPP program. The SBA approved many of their applications and funds have started rolling in. While the receipt of funds may provide much-needed temporary relief, that relief might be short-lived if companies find out that they have to repay the loans because they did not properly plan for the use of loan proceeds. Companies only have eight weeks from the first date of funding to spend borrowed funds, so time is of the essence.

On-Demand Webinar: Planning and Managing PPP Loan Forgiveness

This on-demand webinar provides an overview of Paycheck Protection Program (PPP) loan forgiveness guidelines and tests; case study examples; estimating, planning, and managing your loan forgiveness; integrating loan forgiveness into your broader business planning decisions; how to apply for loan forgiveness; and what to do if part or all of your loan doesn’t qualify for loan forgiveness.

The PPP’s Loan Forgiveness Provision Leaves Out Many Companies That Need it the Most

The Paycheck Protection Program has gaps in the rules that will drastically reduce the program’s loan forgiveness benefits for some of the hardest-hit companies.

Understanding the Loan Forgiveness Provision of the Paycheck Protection Program

The application process for the SBA’s Paycheck Protection Program (PPP) began on April 3, 2020. Since then, businesses have been scrambling to complete the application and gather the supporting documentation to submit to their lenders. Borrowers are now beginning to be notified that their application has been approved, and some have already received their loan proceeds.

Treasury and Federal Reserve Unveil Main Street Lending Program Authorized Under the CARES Act

On Thursday, April 9, the Treasury and Federal Reserve announced that they are taking additional steps as part of the CARES Act to provide up to $2.3 trillion in financial support for businesses and state and local governments affected by the COVID-19 pandemic. According to Chairman Jerome Powell, the Fed is running nine different lending facilities in priority areas where help is needed.

Paycheck Protection Program Loan Application Clarifications

On April 6, the Small Business Administration (SBA), in conjunction with the Treasury, issued additional guidance about the Paycheck Protection Program (PPP) loan process. The guidance is in the form of a Frequently Asked Questions document. We wanted to alert you to three of the FAQs in particular, as these represent areas of frequent confusion and speculation among many of the businesses applying for PPP loans.

Plan Sponsor Guidance for Adopting New CARES Act Retirement Plan Provisions

Over the past week, a major focus of the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been the availability of Paycheck Protection Program loans through the Small Business Administration. However, the CARES Act also includes several new provisions related to retirement plans associated with distributions, loans, and required minimum distributions that plan sponsors need to adopt.

A Closer Look at the Employee Retention Credit Under CARES Act Section 2301

On Friday, March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. Although much of the attention within the CARES Act relates to the Paycheck Protection Program, a new employee credit was introduced to provide employers an incentive to keep their employees on the payroll. In essence, employers will be provided a refunded tax credit against their payroll taxes. Here is a more detailed discussion of the Employee Retention Credit.

On-Demand Webinar: What You Need to Know About Key Business Tax Provisions in the CARES Act

This 45 minute webinar provides an overview of employee retention credit; payroll tax deferral; a technical correction to Qualified Improvement Property depreciation; treatment of anticipated business losses in 2020, including a change to the rules for net operating losses (NOLs); and paid leave tax credits (included in the Families First Coronavirus Relief Act).

SBA Releases Additional Guidance for Paycheck Protection Program

Last night, the Small Business Administration (SBA) issued additional guidance for the Payroll Protection Program in the form of an interim final rule, which can be accessed on the SBA’s website.

On-Demand Webinar: What You Need to Know About the Paycheck Protection Program Component of the CARES Act

This 45 minute webinar covers key provisions of the Paycheck Protection Program, aspects of the related Loan Forgiveness, additional relief offered by the Economic Injury Disaster Loan Program, and how to prepare for the loan application process.

CARES Act Provisions that Apply to Individuals

On Friday, March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. Here is an outline of several key provisions of the CARES Act that provide assistance to individuals.

Treasury Department Releases Additional Information for Paycheck Protection Program

The Treasury Department has published an overview of the Payroll Protection Program, a related information sheet, and a loan application. The Treasury’s guidance also offered additional details about the program, including changes from some of the terms that were anticipated based on the original Act.

Key Business Tax Provisions in the CARES Act

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides relief to taxpayers affected by the novel coronavirus (COVID-19). The CARES Act is the third round of federal government aid related to COVID-19. We have summarized the top business provisions in the new legislation below, with more detailed alerts to follow.

Sample SBA Loan Application for Paycheck Protection Program

The Small Business Administration is working with authorized lenders of the Paycheck Protection Program to finalize the application process, and expects lenders will be able to begin accepting applications as early as April 3, 2020. To help companies prepare, the SBA issued a sample application.

Fundamentals of the Paycheck Protection Program Aspect of the CARES Act

On Friday, March 27, President Trump signed the more than $2 trillion coronavirus stimulus bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. It is the third phase in a wave of legislation designed to provide relief to businesses and individuals impacted by the coronavirus.

The CARES Act and Your Retirement Plan

In addition to the loan and stimulus programs available to businesses, the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a number of provisions that should provide assistance to plan sponsors as they deal with the COVID-19 outbreak.

CARES Act to Provide Critical Loans for Small and Medium-Sized Businesses

One of the most significant elements of the CARES Act allows businesses with fewer than 500 employees to seek loans to cover employee compensation, certain healthcare benefits and premiums, interest payments on mortgage obligations, rent and lease payments, and utilities.

$2 Trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act Signed Into Law

On Friday, March 27, President Trump signed the more than $2 trillion coronavirus stimulus bill known as the CARES Act into law. The CARES Act will offer loans for small and large businesses, provide direct payments to many Americans, expand unemployment insurance, and provide additional resources to an overwhelmed health care industry as well as state and local governments.

$2 Trillion Coronavirus Relief Package Passed by Senate

On Wednesday, March 25, the White House and the Senate reached agreement on an estimated $2 trillion coronavirus stimulus bill. It is the third step in a wave of legislation designed to provide relief to the millions of American citizens and businesses impacted by the coronavirus. Earlier legislation included an $8.3 billion bill to fund vaccine development efforts, as well as the passage of the Families First Coronavirus Response Act to provide expanded paid leave.

Additional Business Relief Opportunities

State and Local COVID-19 Business Relief Programs

In addition to programs enacted at the federal level to provide financial relief to struggling businesses impacted by COVID-19, many state and local governments have made loan and other assistance programs available to businesses. Here are several such programs available in our region.

The Families First Coronavirus Response Act

IRS Issues Additional Guidance on Paid Leave Tax Credits Included in the FFCRA

Tuesday evening, the Internal Revenue Service issued much-anticipated guidance on the COVID-19 related tax credits for required paid leave provided by small and midsize businesses. More information can be found on the IRS website. These tax credits were included as part of the Families First Coronavirus Response Act (the “FFCRA”) signed by President Trump on March 18, 2020.

COVID-19 Relief Bill Signed Into Law – Guidance on Paid Leave Provisions

President Trump signed into law a second COVID-19 aid bill – the Families First Coronavirus Response Act. The bill is designed to provide economic relief from the numerous impacts related to the coronavirus epidemic. It contains a number of important components, including free COVID-19 testing, increased Medicaid funding and nutrition assistance for low income families, and expanded unemployment insurance.

Tax Deadline Extensions

PA Grants waiver of April, May, and June Accelerated Sales Tax Prepayment

Certain businesses are required to make monthly sales tax prepayments to the Commonwealth of Pennsylvania. The prepayment represents the acceleration of the subsequent month’s sales tax liability. It was announced today that the Pennsylvania Department of Revenue is waiving the requirement to make the accelerated prepayment in April, May, and June of 2020.

New Jersey Poised to Extend Corporate and Individual Tax Filing and Payment Deadlines to July 15, 2020

Legislation has passed both Houses in the state of New Jersey that will pave the way for extending the April 15, 2020 tax filing and tax payment deadlines for corporate, partnership, and individual income taxes until July 15, 2020. The extended due date will also cover first quarter 2020 estimated tax payments. Penalties and interest on 2019 income tax payments will be waived through the new July 15 deadline.

IRS Issues New Guidance for Payroll Tax Deferral

The IRS has issued much new guidance on the payroll tax deferral component of the CARES Act. Under the original text of the CARES Act, it was unclear whether companies that applied for a Payroll Protection Program (PPP) loan were also eligible for payroll tax deferral. The original text of the Act said that a company cannot take payroll tax deferral if it has loan forgiveness under the PPP loan program. This language was confusing and not very clear regarding the applicability for companies that have already applied for a PPP loan.

New IRS Guidance for Tax Filing and Payment Extensions

The IRS announced several weeks ago that the April 15 federal tax payment deadline and the federal tax filing deadline have been extended to July 15. However, uncertainty remains with regard to other tax filings (such as the non-profit Form 990s). Additionally, no guidance had been provided as of that time with regard to changes in the deadline for second quarter estimated tax payments. Last night, the IRS issued further guidance via Notice 2020-23.

Federal and State Tax Filing and Payment Extensions Explained

As we alerted you last month, the April 15 federal tax payment deadline and the federal tax filing deadline have been extended to July 15. During this time, the IRS is also waiving interest and penalties. These extensions were designed to allow Americans to focus their attention on their families, communities, and businesses during this challenging time.

Pennsylvania Extends Personal Income Tax Return Filing Deadline; Other State and Local Deadline Updates

On Saturday, March 21, the Pennsylvania Department of Revenue announced that it is extending the personal income tax filing deadline to July 15, 2020. Penalties and interest on 2019 personal income tax payments will also be waived through the new July 15 deadline. This extension applies to final 2019 tax returns and payments, as well as estimated payments for the first and second quarters of 2020.

Tax Filing Deadline Extended to July 15

Treasury Secretary Steven Mnuchin announced that the tax filing deadline will be extended until July 15. This extension will allow Americans to focus their attention on their families, communities, and businesses during this challenging time.

April 15 Tax Payment Deadline Extended

In a March 17 White House briefing, Treasury Secretary Steven Mnuchin announced that the April 15 tax payment deadline will be extended for 90 days, until July 15. During this time, the IRS will also waive interest and penalties. Individuals who owe taxes would be able to defer up to $1 million and corporations up to $10 million.

General Business Guidance

Kreischer Miller COVID-19 Business Impact Survey

Kreischer Miller recently conducted a COVID-19 Business Impact Survey to better understand how the global pandemic is affecting organizations and our region as a whole.

On-Demand Webinar: Managing Your Business Through a Crisis

There is no doubt that the COVID-19 crisis has represented the largest challenge many of us have ever had to face in our organizations. The impact to the economy, businesses, and employees has been immeasurable, and the level of uncertainty is nearly unprecedented. This on-demand webinar provides a three-phase, action-oriented framework for managing your business through this crisis.

IT Tips for a Secure Remote Work Environment

As a result of the COVID-19 pandemic, most organizations are scrambling to leverage remote work solutions in order to maintain operational capabilities. It is critical to implement IT systems in a reliable and secure manner as your employees work remotely. Consider these key IT components as you work to ensure your core business processes continue to run efficiently.

Industry Updates

The Employee Retention Tax Credit is an Alternative to PPP Loans for Construction Companies

When the CARES Act was passed, the most popular and sought after relief option was the Paycheck Protection Program (PPP). When PPP loans became available on April 3, nearly 2 million small businesses raced to apply. Those who were approved became ineligible to utilize another CARES Act relief option – the Employee Retention Tax Credit (“ERTC”). For those companies that are not PPP loan recipients, however, the ERTC is a resource that should be given consideration.

On-Demand Webinar: Mitigating Construction Contractors’ Business and Financial Risks on the Job Site

This on-demand webinar covers contract options to minimize your business and financial risks, new trends in contract language, employment law considerations for employees returning to job sites, new safety considerations and workers’ compensation issues, best practices for managing potential claims and change orders, and methods to track additional costs on your jobs.

Construction Industry Alert: State and Local Relief Options Available to Construction Contractors

As construction contractors in the state of Pennsylvania prepare to restart operations and projects, state and local governments have made changes and implemented programs to help ease the burden and financial pain caused by COVID-19. For many construction contractors, managing cash is critical during these challenging times. Here is a summary of various relief options available to assist construction contractors with cash management as a result of the COVID-19 pandemic.

Investment Industry Update: Hedge Funds and Private Equity Firms Unable to Participate in PPP Loan Program

President Trump has signed the $484 billion bill intended to provide additional relief to businesses impacted by the COVID-19 pandemic. The bill includes approximately $310 billion in additional funding for the Paycheck Protection Program (PPP). Unfortunately, hedge funds and private equity firms will be unable to take advantage of PPP loans.

Construction Industry Alert: 4 Critical Areas Construction Contractors Should Consider in Their COVID-19 Plans

There is no playbook for how to manage a business in this COVID-19 environment. While construction activity is still happening to varying degrees across the country, state and owner restrictions, job quarantines, employee safety, payment delays, supply chain delays, and other concerns present unique challenges for the construction industry. Here are four critical areas that construction contractors should consider as they continue to navigate the COVID-19 crisis.

COVID-19 Updates and Resources for the Government Contracting, Architecture, and Engineering Industries

Over the past few weeks we have seen various deadlines such as the tax filing and payment deadline be extended due to the ongoing COVID-19 crisis. Many of our clients have reached out to see whether the DOT may be expected to extend its overhead submittal deadline of June 30. At this time, we are not aware of any state DOT agencies changing the deadline for submittal.

Coronavirus Manufacturing Pulse Survey

We conducted a brief Coronavirus Pulse Survey to get regional manufacturers’ take on the potential impact to their supply chain and sales, as well as whether they are planning for any other impacts such as higher absentee rates and work stoppages.

Information contained on this page should not be construed as the rendering of specific tax, accounting, or other advice. Material may become outdated and anyone using this information should research and update to ensure accuracy. In no event will the firm be liable for any damages, direct, indirect, or consequential, claimed to result from use of the materials contained here. Readers are encouraged to consult with their advisors before making any decisions.