{"id":470,"date":"2020-03-31T18:37:05","date_gmt":"2020-03-31T18:37:05","guid":{"rendered":"https:\/\/franchiseindustryblog.com\/?p=470"},"modified":"2022-06-28T22:08:31","modified_gmt":"2022-06-28T22:08:31","slug":"coronavirus-franchise-sba-stimulus-program","status":"publish","type":"post","link":"https:\/\/www.franchiseindustryblog.com\/coronavirus-franchise-sba-stimulus-program\/","title":{"rendered":"Coronavirus Franchise SBA Stimulus Program"},"content":{"rendered":"
The entire world has been affected by the Coronavirus Pandemic, the franchise industry is certainly part of this sweeping downturn initiated by the virus.\u00a0 As franchised small businesses, the timing of this stimulus program and the terms are positioned well to help us as franchise industry owners get through this terrible situation and emerge with new life in the second half of 2020.\u00a0 Use the resources and leverage our government’s support to help your franchised business or franchisor entity get through Coronavirus.\u00a0\u00a0<\/span><\/p>\n CARES Act Summary<\/span><\/p>\n The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a roughly $2 trillion bill intended to provide emergency assistance and healthcare response for individuals, families, and businesses affected by the COVID-19 pandemic.\u00a0 The measure provides direct financial aid to American families, payroll and operating expense support for small businesses, and loan assistance for distressed industries.<\/span><\/p>\n Top Takeaways for Restaurants, their owners, and employees:<\/b><\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Tax Implications of CARES<\/b><\/span><\/p>\n Net Operating Loss (NOL) Rule Relaxation –<\/b><\/span>Losses arising in 2018, 2019 and 2020 can be carried back to the five preceding years.<\/b><\/span><\/p>\n Employer Payroll Tax Delay<\/b><\/span><\/p>\n Employee Retention Payroll Tax Credit<\/b><\/span><\/p>\n Certain employers may receive a payroll tax credit of as much as $5,000 per employee for wages (and health benefits) paid after March 12, 2020, and before January 1, 2021.<\/span><\/p>\n Increase of Interest Expense Deduction Limitation<\/b><\/span><\/p>\n In 2019 and 2020, corporations can deduct more of their borrowing costs (up to 50 percent of their earnings, instead of only 30 percent of their earnings).<\/span><\/p>\n Modification of Refundable Minimum Tax Credit<\/b><\/span><\/p>\n Corporations with eligible minimum tax credits may accelerate their refunds.<\/span><\/p>\n Technical Correction to Fix \u2018Retail Glitch\u2019<\/b><\/span><\/p>\n Businesses can fully deduct the cost of certain property improvements back to 2018.<\/span>\u00a0<\/b><\/span><\/p>\n On March 20, the IRS issued Notice 2020-18, confirming that any person with a Federal income tax payment or return due April 15, 2020, will be provided an automatic postponement of such deadline to July 15, 2020.\u00a0 State deadlines vary.<\/b><\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Keeping American Workers Paid and Employed Act<\/b><\/span><\/p>\n \u00a0<\/span><\/p>\n Paycheck Protection Program<\/b><\/span><\/p>\n LOAN AMOUNT<\/span> \u2013 The lesser<\/i> of:<\/span><\/p>\n ELIGIBLE BUSINESSES<\/span> \u2013 any business concern:<\/span><\/p>\n TERMS:<\/span><\/p>\n Prospective borrowers can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA\u2019s lending programs, including numerous community banks. Borrowers do not have to visit any government institution to apply for the program, but can find SBA-approved lenders in your area through SBA\u2019s online Lender Match tool https:\/\/www.sba.gov\/funding-programs\/loans\/lender-match<\/span><\/a>.\u00a0 Local Small Business Development Center https:\/\/www.sba.gov\/tools\/local-assistance\/sbdc\/<\/span><\/a> or Women\u2019s Business Center https:\/\/www.sba.gov\/local-assistance\/find\/?type=Women%27s%20Business%20Center&pageNumber=1<\/span><\/a> can provide free assistance and guide you to lenders.<\/span><\/p>\n Emergency Economic Injury Disaster Loans (\u201cEIDLs\u201d)\u00a0<\/b><\/span><\/p>\n\n
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