MPL General Counsel Corner – PPP, EIDL, ERC…..Gooood Morning Vietnam!
Like any “good” government program, acronyms, not names, are the standard identifiers. There can be a lot of confusion as to what they are and how they apply. It reminds me of a classic scene in Good Morning Vietnam where Adrian Cronauer (played by Robin Williams) says the following:
“Excuse me, sir. Seeing as how the V.P. is such a V.I.P., shouldn’t we keep the P.C. on the Q.T.? ‘Cause if it leaks to the V.C. he could end up M.I.A., and then we’d all be put out in K.P.”
Keeping this in mind, I thought an update on three key Coronavirus relief programs would be helpful.
Paycheck Protection Program (PPP) – An almost $1 Trillion program originally established under the Coronavirus Air, Relief and Economic Securities Act (CARES Act) and recently updated under the PPP Extension Act of 2021. The program ends May 31, 2021 if you are thinking of applying. Key things to consider:
- It is still open for applications (either initial or follow-on applicants)
- You must meet certain eligibility requirements to apply
- It can be fully or partially forgiven if the funds are used for the allowed purposes
Economic Injury Disaster Loan (EIDL) – This loan package was also made available for Coronavirus relief under the various bills passed last year. The EIDL program was scheduled to expire at the end of 2020. However, under the Consolidated Appropriations Act (CAA), the EIDL was extended through the end of 2021. Also, under the American Rescue Plan of 2021 (ARP), an additional $15 billion in targeted EIDL funding was approved.
- Investopedia has a good overview of the EIDL and how it works with other programs.
- EIDL Overview and Application
Employee Retention Credit (ERC) – This refundable tax relief program was originally authorized under the CARES Act and covered employers who did not qualify or apply for the PPP. However, with the passage of the CAA and the ARP, the ERC was extended into 2021 and PPP recipients were eligible to use it.
- EisnerAmper provided a good overview of the ERC and its interaction with the PPP in a recent webinar.
- IRS Announcement from 1/26/21
- And if you did not get enough of the acronyms, check out the IRS ERC FAQ
If your head is spinning or you have further questions about the above or other relief programs (see the links below), please reach out to your professional service providers or trade organizations.
- EisnerAmper Coronavirus Hub
- NFIB Small Business Resources in Response to Coronavirus
- RKL Coronavirus Resource Page
- Trout CPA Covid-19 Resources
- The Tax Warriors Covid-19 Tax Resource Center
As for me, I am taking some PTO and will be MIA while I watch GMV.
Enjoy your weekend!
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As always, please don’t hesitate to email me (firstname.lastname@example.org), Andy Miller (email@example.com), Christian Miller (firstname.lastname@example.org), Erik Spurlin (email@example.com) or anyone in our office with questions or comments.
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