Category: Funding

On March 17th, the US Government announced the Economic Relief Payment, deemed by many as the “stimulus check,” as a response to the Coronavirus and hardships caused by the economic shutdown. Therefore, many Americans and US residents are wondering whether they will receive the check. Where will the stimulus check come from, and will it be directly deposited into your account? If so, when? It is each individual’s responsibility to know, first and foremost, if they qualify for the stimulus check. It all begins, however, with first filing taxes. The amount to be received depends mainly on one’s filing status, which include single, head of household, or married filing jointly. Who qualifies for the stimulus check? Individuals who filed single and earned an adjusted gross income of up to $75,000, head of household who made up to $112,500, and married filing jointly who made up to $150,000 are qualified to receive the stimulus check payment. Recipients of social security benefits, supplemental security income (SSI) recipients, and disability income recipients qualify for the stimulus check as well. Last but not least, veterans and individual non-filers, which means those who made less than $12,200 and did not file their tax return, are also eligible. How much are taxpayers receiving? Individuals who filed as single will receive $1,200, but if they have made more than $75,000 and up to $99,000, the check amount will be reduced to less than the $1,200 originally intended. Additionally, the heads of household will receive $,200, plus $500 per qualified child, but once their income threshold is more than $112,500 and up to $136,500, the check will be reduced to less than $1,200, depending on the income bracket and the IRS computation. Moreover, married couples who file jointly will receive $2,400 plus $500 per qualifying child. Based on their gross income, the amount will be reduced once the income reaches more $150,000 up to $198,000. Who does not qualify? Individuals who do not have a social security number and those who are not considered resident aliens for tax purposes do not qualify for the stimulus check. This means those who file for the following forms do not qualify:1040-NR, 1040NR-EZ, 1040-PR, and 1040-SS. Moreover, dependents also do not qualify for the stimulus check because their parents or financial sponsor have already collected a stimulus payment on their behalf as the additional $500 per child. How am I going to receive the payment? The IRS will use the payment process used in the last tax return. Direct deposit is the fastest option to receive the stimulus payment, but the IRS will use the taxpayers address used on the last tax return if they did not use direct deposit. In case the taxpayer has not filed for taxes yet, the IRS will use the last return submitted to confirm eligibility. In case the taxpayer has not filed for taxes since they did not have to file, this link is where they will need to enter their bank account information. Finally, the IRS will send a letter in the mail in the next 15 days as a payment confirmation. For additional information, this link is available for details and more clarification.

In the midst of this pandemic, there are many factors that created uncertainties and economic losses to businesses. The Small Business Administration (SBA) has created relief programs to assist businesses due to the negative externalities and impacts caused by Coronavirus (COVID-19). The US government has located funds available to loan to businesses to sustain their operating activities. The loans and advances are processed by local lenders, FDIC-insured financial institutions that are participating in the relief program. If you are wondering whether you qualify for the loan as a sole proprietor or independent contractor, the SBA has considered them as small businesses as well. Paycheck Protection Program (PPP) One program is commonly known as the Paycheck Protection Program (PPP). The program is designed to assist small businesses that find themselves in financial hardship due to the Coronavirus pandemic. The maturity length of the loan is two years with an interest rate as low as 1%. No fees are charged and collateral is not required. In case business owners are worried about not being able to repay the loan due to the economic uncertainties, the loan is forgivable if certain conditions are met based on the salary. The conditions include using at least 75% of the funds to cover payroll, and the remaining should be used to cover utilities, rent, and mortgage interest. If you are not sure whether your business qualifies, this link will guide you depending on your industry and income threshold. The application process started on April 3rd, and the programs will continue until June 30th. Lenders will start collecting their payment 6 months after the disbursement date. Economic Injury Disaster Loan (EIDL) Emergency Advance Another program is the Economic Injury Disaster Loan (EIDL) Emergency Advance, designed to advance funds to small businesses that are facing difficulties due to the current pandemic.Small businesses must have less than 500 employees, at the exception of few industries, based on the SBA size standard tool available. The funds can be disbursed within a few days after the application has been accepted. It is up to $10,000, and the advance does not have to be repaid. SBA Express Bridge Loans Another loan is the Express Bridge Loan, designed for businesses in economic hardship that need immediate access to cash up to $25,000. The loan is not forgivable and is meant to be fully repaid, unless it has been processed through EIDL. Small Business Debt Relief If small businesses already had ongoing loans before the pandemic outbreak, the SBA created the Debt Relief program to delay the interest and principal payments due to the financial hardship caused by COVID-19. However, the interest will still continue to accrue even if the borrowers are not making payments. This program is designed to defer liabilities until December 31, 2020. For additional information, this link is available to assist business owners. The actual economic situation shows how business budgeting is critical, especially in these moments of uncertainty. Contact Eneya Accounting for an initial free consultation to work on your books and help you apply for the loans to sustain your business.Email: contact@eneyaaccounting.comOffice Phone: 949-529-0740