TOPIC: Business Planning 

With President Trump signing into law the Consolidated Appropriations Act, 2021 (CAA) on Sunday, December 27, the SBA has 10 days from December 27, 2020 to provide additional guidance for Round 2 of PPP and 24 days from December 27, 2020 to give us a 1-page forgiveness application that will be used for PPP loans under $150,000. Lenders will then have to implement PPP forgiveness based on the newer, easier application.

As we patiently wait for new forms, guidance and processes to be issued by the SBA/Treasury, and lenders to implement the guidance, here are four key questions to check as you do some planning.

1. Did your business have a 50% reduction in revenue in any quarter compared to the same quarter in 2019? (Employee Retention Credit – ERC 2020)
2. Did your business have a 25% reduction in revenue in any quarter compared to the same quarter in 2019? (PPP Round 2)
3. Did your business have a 20% reduction in revenue in the 4th quarter of 2020 compared to the 4th quarter of 2019? (Employee Retention Credit 2021) Starting in 2021, the rules for the Employee Retention Credit (2021 style) are changed dramatically.
4. Was your business subject to mandatory government shutdown at any point in 2020 due to COVID? (Employee Retention Credit 2020)

If you answered Yes to any of these questions, you may qualify for more funding through the PPP Round 2 or the Employee Retention Credit.

CDS is committed to keeping you up-to-date on the implementation provisions, changes, and guidance of this stimulus bill.  To discuss your individual or business situation concerning the COVID-19 pandemic, or for any questions related to this stimulus package, please contact your CDS professional.

Let us exceed your expectations. Visit with one of our experts by calling (888) 388-1040.

View Full Text of CAA Bill

Last updated: 12-31-20 at 8 am.