PPP, Tax Returns and EIDL Updates

Hi all, A few quick updates today - let's jump right in: PPP Applications extended until May 31 President Biden has signed the PPP Extension Act into law. The legislation will extend the deadline for the Paycheck Protection Program (PPP) applications to be accepted until 5/31/2021. The deadline for the SBA to approve the applications will now be 6/30/2021. This tiered approach is meant to allow the borrowers, lenders, and the SBA much needed time to address any potential issues with the submitted PPP applications. Please check with your lender on their deadlines for accepting applications. Individual tax return deadline extended to May 17, 2021 The April 15 deadline for individual tax returns has been extended until May 17, 2021. This extension applies to any individual who files a federal individual income tax return on Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (the Form 1040 series) or has a federal tax payment reported on one of these forms that would otherwise be due April 15, 2021. The notice also automatically postpones to May 17 the time for affected taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). The IRS cautions that the postponement does not apply to any other type of taxpayer or federal tax return. The IRS also reiterated that it has not extended the April 15, 2021, due date for estimated income tax payments. EIDL 30 year loan amounts increased The U.S. Small Business Administration is more than tripling the maximum amount that small businesses and nonprofits can borrow under the COVID-19 Economic Injury Disaster Loans (EIDL) program. Starting the week of April 6, the loan limit for COVID-19 EIDL loans will jump from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000.