Pandemic Resource Update 5-11-20
Good afternoon clients,
More info/updates coming your way. Scroll through for info relevant to you….
Resources for Moving Forward…
Amazon Launch Bootcamp – FREE for WWBIC Clients
Michael Zhang – owner of Fenrici Brands and Amazon Masterminds, is offering a FREE 5-Day/10-Hr training to launch your products on Amazon & transform your business during the Covid-19 Pandemic. This bootcamp usually costs about $1000; so this is an amazing opportunity if you are interested in taking your products to Amazon. The sessions will be held via Zoom at the following times: 5/14, 5/19, 5/21, 5/26, and 5/28 @12pm-2pm. You must be able to attend all 5 sessions. They are taking 20 students. See the attached flier for more information.
Re-Opening Guidelines for Wisconsin Businesses
Last week, Governor Evers announced a series of publications that would address best practices and safety guidelines for Wisconsin businesses. With input from national and state health and industry experts, WEDC has compiled this series of industry-specific documents to help in reopening your business (while taking the necessary precautions to maximize safety).
Those documents can be found here (scroll to the bottom). It is advised to bookmark the page and check back regularly for updates to guidelines and the addition of new industry documents. Note the following industries are already included in the listing: agriculture, gyms & fitness centers, hair & nail salons, manufacturing, hospitality/lodging, retail, and restaurants, along with several others.
Today, Governor Evers announced that Wisconsin retail shopping businesses can now have up to 5 customers at a time for standalone or strip-mall based stores.
WEDC’s Focus Forward initiative
The Wisconsin Economic Development Corporation has launched Focus Forward, a digital platform that catalogues resources related to recovery from the economic impact of COVID-19 in Wisconsin. We anticipate that this website, as well as the resources that are highlighted there, will continue to be updated for the foreseeable future with information relevant to business owners.
Grant Program for Ethnically Diverse Micro-Businesses
Note: If you recently received WEDC grant funds (through the SB 20/20 program) and/or a PPP loan, you are NOT eligible for this program. (Please be sure to review other eligibility guidelines before applying.)
The Ethnic Minority Emergency Grant Initiative is focused on supporting ethnic micro-businesses that are being adversely impacted by the COVID-19 crisis. This emergency fund will provide a one-time grant of $2,000 per company for ethnic minority-owned micro-businesses operating in the retail, hospitality and service industries.
More information on this program can be found here, here, and here.
PPP (Paycheck Protection Program) Loans Update
PPP Loan Funds Still Available:
As of last Thursday (5/7), there was $127 billion remaining in appropriations for PPP loans. WWBIC is currently accepting applications for this. If you have applied, or are interested in applying with WWBIC, please let me know so I can best support this process for you.
PPP Loan Forgiveness and Tax Deductions – Don’t Freak Out Yet:
The IRS has made the determination that the expenses that are used to have the PPP loan forgiven, aka payroll, utilities and rent, cannot be also used as expenses to reduce income. Aka, if you have $20,000 of your loan forgiven, we will need to reduce your payroll, utility and rent expense by $20,000, which in essence will increase your taxable income by $20,000.
Treasury Secretary Steven Mnuchin, is backing the IRS’ decision - https://www.foxbusiness.com/personal-finance/mnuchin-irs-coronavirus-ppp-loan-tax-break-denial
However, the IRS/Mnuchin decision has received pushback from lawmakers, who have said it is not what Congress intended. Now, Senators have introduced a new bill to allow PPP Loan Tax Deductions:
https://401kspecialistmag.com/senators-introduce-new-bill-to-allow-ppp-loan-tax-deductions/
“Senate Finance Committee Chairman Chuck Grassley, R-Iowa, joined Sens. John Cornyn, R-Texas, Ron Wyden, D-Ore., Marco Rubio, R-Fla., and Tom Carper, D-Del., to introduce the Small Business Expense Protection Act on Wednesday, which would confirm that small businesses can deduct expenses paid with a PPP loan.”
“When we developed and passed the Paycheck Protection Program, our intent was clearly to make sure small businesses had the liquidity and the help they needed to get through these difficult times,” Grassley said in a statement. “Unfortunately, Treasury and the IRS interpreted the law in a way that’s preventing businesses from deducting expenses associated with PPP loans. That’s just the opposite of what we intended and should be fixed. This bill will do just that.”
What does that mean for your business? Well, we’re not sure yet. We have to wait to see if Congress is able to pass this bill (or a similar bill) first. I’m encouraged by the fact that there is strong bi-partisan support for such a bill. Stay tuned…
Tax Relief
Just a quick reminder that IRS information on tax relief for businesses can be found here.