From mid-April until June, we sent out 22 E-Blasts letting our clients know about the various grant and loan programs, the rules at the time, changes in the rules and strategies for spending the money.
The restrictions were many and the rules complex. Every situation was different.
As of this writing, Congress is debating a new stimulus with possible new PPP money and other provisions to help the restaurant industry. The bill is yet to be finalized.
EIDL – Economic Injury Disaster Loans
What we do know is that EIDL loans are still available. Currently, they are limited to $150,000 but have very preferable terms. No personal guarantees required, no security needed, 1% interest rate, up to 30 year payback and until the money runs out, he first $10,000 is automatically forgiven.
Call our financial partner Eric at Independent Business Consulting to apply. Eric’s number is 248-924-2410.
PPP – Paycheck Protection Program
Those who have received PPP money must apply for forgiveness – it is not automatic.
Under the new PPP forgiveness guidelines, you have 24 weeks from the time you received the PPP money to use it. Under the new rules, you do not have to spend all your PPP money at one time to bring your FTE’s up to pre-COVID-19 levels if business does not warrant it. They loosened the rules so you can hit pre-COVID FTE levels any time in that 24 week period. Under the new rules, you only need to spend 60% for payroll and still get full forgiveness. The other 40% of PPP money is still limited to paying rent, utilities and interest on debt (that was in existence prior to February 15, 2020).
You may also apply for forgiveness immediately after you have spent all your PPP money or you can wait up to 10 months to apply. Kallas is accepting applications now to calculate and apply for forgiveness for our clients. Call Tony or Nick if you would like Kallas to apply for you. Applications are not being accepted by lenders yet but Kallas can put you on our list to apply as soon as the digital applications are ready. Call Kallas and he will send you the agreement for this service.
ERTC – Employee Retention Credit under the CARES Act
If you have not received a PPP loan, you may be eligible for ERTC. The ERTC is a powerful tax credit that equals 50 percent of your employee’s pay up to a maximum of $5,000 per employee. You can go back to payrolls beginning March 13 2020 to obtain back credits. The credit can be used to reduce any payroll taxes you owe and any excess credit can be refunded to you. This can amount to thousands of dollars in your pocket. Kallas can perform the necessary calculations and obtain the credit for you. Contact Jordan at Kallas extension 119 for more info.
Detroit Restaurants – Detroit Economic Growth Corporation
On August 5, 2020, the U.S. Department of Commerce announced a new 2.9 million in funding to go to the Detroit Economic Growth Corporation to be used for lending to small businesses affected by COVID-19.
Kallas will provide more information as we can. If you are not signed up to received e-mail updates, call Dawn at Kallas ext 129 or email the request to firstname.lastname@example.org