PPP Forgiveness + Stimulus Updates (7/29/20)

PPP FORGIVENESS + STIMULUS UPDATES

7/29/20

PPP Automatic Forgiveness for Loans Under $150,000 (PROPOSED, NOT PASSED YET)

There have been 50 major changes to the PPP Loans since it first passed. The latest bill provides for automatic forgiveness of a Paycheck Protection Loan that is not more than $150,000 if the recipient submits a one-page form. This significantly benefits sole proprietors, independent contractors and one-person operations. This would cover 85% of PPP loans. It has not yet passed but has the President’s blessing. Stay tuned!

Didn’t Qualify for the Stimulus Payment?

Capture it on Your 2020 Taxes

If you did not receive a stimulus payment, or only a part of the maximum payment, you may still become eligible for the credit. The prepaid amount paid during 2020 is an estimate of the credit and will be calculated and reconciled on your 2020 tax return. Get tax planning advice from your CPA for 2020 to maximize your stimulus payment.

Fed Expands Main Street Lending Program to Nonprofits

The Federal Reserve Board voted to modify the Main Street Lending Program to provide greater loan access to nonprofit organizations such as educational institutions, hospitals and social service organizations. Nonprofit organizations are now eligible for new loans or for the expansion of existing loans.

IRS has Granted COVID-19 Relief for Safe Harbor 401(k) Plans

In response to the economic crisis related to the COVID-19 pandemic, the IRS has expanded the ability of employers to reduce or suspend the promised employer matching or other contributions to a safe harbor 401(k) plan. Normally, there are substantial restrictions that limit an employer’s ability to adopt amendments in the middle of the plan year.

Stay Strong. Stay Healthy. Stay In Touch.

Sending my best to everyone,

Paige

Paige W. Pierce

President & CCO

McLaughlin Ryder Investments, Inc.

(801) 949-5577 c

ppierce@mclaughlinryder.com