As we have noted in our last few posts, there is new information coming out every week regarding the recently-passed CARES Act. This act is designed to help small businesses survive while enduring unique circumstances during the COVID-19 pandemic. At The Harding Group, we work hard to keep our customers up-to-date on new information that can serve them. We’ve compiled a few new updates on COVID-19 relief programs that we believe you should know.
Economic Impact Payments
These payments of $1,200 to individuals who submitted their 2018 or 2019 tax returns with an adjusted gross income under $75K are hitting bank accounts already. If you have received tax refunds in the past through direct deposit, you shouldn’t have to do anything but wait. If you usually receive a check from the IRS, look for a check in the mail. However, if you haven’t filed 2018 or 2019 and you believe you are eligible for a payment, or if the IRS doesn’t have your bank information from your last return, go here to speed up payment. You can find more details here as well.
Unfortunately, states have not been able to keep up with the massive volume of claims, and the Federal money does not seem to be flowing yet. Our best advice right now is to keep trying! You should be paid in full when it kicks in. There is a lot of confusion in this area still, but you can find much information and a helpful Q&A page on the Maryland Unemployment Claims site.
The Paycheck Protection Program
This COVID-19 relief program is now live! The first round of PPP funding has already run out, and banks are overwhelmed, so we do not suggest waiting any longer. The updated brochure provided here can tell you how much you can borrow and how much can be forgiven.
You can also apply for an SBA Economic Injury Disaster Loan (EIDL) Emergency Advance. This is a $10K advance on an SBA loan or a PPP loan, which does not have to be repaid. The advance will just reduce the amount of your incoming loan. You can find more information here.
Maryland COVID-19 Relief Programs
The MD $10K Grant or “Small Business COVID-19 Emergency Relief Grant Fund,” MD $50K Grant or the COVID-19 Layoff Aversion Fund,” and the MD $50K Loan or “Small Business COVID-19 Emergency Relief Grant Loan” are no longer accepting applications.
Highlights of the SBA COVID-19 Relief Programs
In addition to the Paycheck Protection Program and the EIDL Loan Advance mentioned above, the SBA is offering the Express Bridge Loan, SBA Debt Relief, and SBA Economic Disaster Loans. The Bridge Loan allows small businesses that have a relationship with an SBA Express Lender to access up to $25K quickly. SBA Debt Relief will enable SBA to automatically pay principal, interest, and fees for six months. You can find more information on these loans and other COVID-19 relief program updates in our newsletter here.
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Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.