04 May COVID-19 Update 10: PPP – Rehire Exemption/Who recieved the funds/Suggestions upon loan funding, Main Street Lending Program, Insurance Refunds, Extension of IRS 2nd Estimates
PPP Rehire Exemption
Over the weekend, the SBA/Treasury FAQ guidance was updated with Question #40 which previews relief for borrowers that have had difficulty rehiring employees.
Chart Shows Which States Received the Most PPP Loans
During the first round of funding of the federal government’s small-business rescue program, the spigot was wide open in Nebraska. Firms there got enough money to cover about three-fourths of the state’s eligible payrolls. It was a different picture in New York.
PPP Loan Suggestions & Reminders
Congress reached an agreement to replenish the funding for the PPP program last week. While borrowers wait for additional guidance and clarifications on the PPP loan program, we wanted to address some common questions and reminders for those that receive loan funding.
Main Street Lending Program
Board of Governors of the Federal Reserve System
The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information regarding eligibility and conditions can be found below.
CA Insurance Commissioner Orders Refunds to Policyholders
On April 13, 2020, the California Insurance Commissioner ordered insurers to make an initial premium refund to policyholders for the months of March and April 2020 for all policies in which loss exposure is less than projected because of reduced commercial activity due to the COVID-19 pandemic and response. The order, set forth in Bulletin 2020-03, applies to commercial liability, commercial multiple peril, and workers’ compensation policies, as well as private and commercial automobile policies. Insurers are ordered to issue the refunds within 120 days.
IRS Extends 2020 Federal 2nd Quarter Tax Payment
The IRS just announced the extension of the 2020 2nd quarter Federal estimated income tax payment due date from June 15, 2020 to July 15, 2020. The extension was announced in IRS Notice 2020-23. If you already received your tax returns and you have a second estimated tax payment due, it has been extended to July 15, 2020.
California’s Franchise Tax Board has also extended the 2020 2nd quarter State estimated income tax payment due date to July 15, 2020.
Please contact your accountant at 818-854-6100 with any questions.