small business - Linkenheimer LLP CPAs & Advisors

EIDL Loans, Restaurant Grants Offer Relief to Struggling Small Businesses

The American Rescue Plan Act (ARPA), signed into law in early March, aims at offering widespread financial relief to individuals and employers adversely affected by the COVID-19 pandemic. The law specifically targets small businesses in many of its provisions.

If you own a small company, you may want to explore funding via the Small Business Administration’s (SBA’s) Economic Injury Disaster Loan (EIDL) program. And if you happen to own a restaurant or similar enterprise, the ARPA offers a special type of grant just for you.

EIDL advances

Under the ARPA, eligible small businesses may receive targeted EIDL advances from the SBA. Amounts received as targeted EIDL advances are excluded from the gross income of the person who receives the funds. The law stipulates that no deduction or basis increase will be denied, and no tax attribute will be reduced, because of the ARPA’s gross income exclusion.

In the case of a partnership or S corporation that receives a targeted EIDL advance, any amount of the advance excluded from income under the ARPA will be treated as tax-exempt income for federal tax purposes. Because targeted EIDL advances are treated as such, they’ll be allocated to the partners […]

By Linkenheimer LLP|2021-04-01T17:24:25+00:00April 1st, 2021|arpa, restaurant, sba|0 Comments

California Tax Updates for 3/24

Update 1:

Two more California cities, Pomona and Santa Ana, have adopted Hero Pay Ordinances to give extra pay to certain workers during the COVID-19 pandemic. Pomona’s ordinance is effective from 3/1/21 through 6/29/21, requiring qualifying retail businesses to pay an additional $4.00 per hour to their workers. Here are the details for Pomona, including which businesses are affected: https://bit.ly/3cCcAkt. Santa Ana’s ordinance also requires $4 per hour of additional pay (from 3/3/21 through 6/30/21). Here are the details for Santa Ana, including which businesses are affected. https://bit.ly/3cEREsX. Or, contact your Linkenheimer CPA with questions.

Update 2:

In his 2021 State of the State address, California Governor Gavin Newsom didn’t propose new or higher taxes. The address was delivered virtually from Dodger Stadium in Los Angeles earlier this month. Newsom devoted most of his address to the COVID-19 pandemic, highlighting the state’s progress in battling […]

By Linkenheimer LLP|2021-03-24T18:46:37+00:00March 24th, 2021|ca, CA tax, california, covid-19, small business|0 Comments

New California Relief Grant Program For Small Businesses Opens Today

California small businesses can now begin applying for some extra relief as part of a $475 million grant program the state is offering. Round 1 for applications starts Wednesday, December 30th and runs through Friday, January 8th at 11:59pm. These grants are limited to small businesses with gross revenue under $2.5 million.

Some highlights of the grant program include:

• $475 million of funding administered by the California Office of the Small Business Advocate will be distributed by Lendistry as the Intermediary, with certain third-parties designated by Lendistry to provide additional support (“Partners”).
• Anticipate issuing grants in the following two (2) rounds of distributions:
o Round 1 – approximately $237.5 million
o Round 2 – approximately $237.5 million
• The program is not on a “first come, first served” basis.
• The application portal for each round will open for applicants for a Open to active For-Profit businesses and Non-Profits.
• Grants will range from $5,000 to $25,000 per eligible business (based on gross revenue).
• Yearly Gross revenue must be at minimum $1,000 and maximum $2.5 million.

Funds from the grant can be used to pay for an establishment’s rent, utilities, resources, employee expenses and other relevant costs.

Eligibility requirements include:

• […]

By Linkenheimer LLP|2020-12-31T01:12:49+00:00December 31st, 2020|ca, california, covid-19, New Tax Laws, small business|0 Comments

Immediate Tax Relief For Some California Small Businesses

Immediate tax relief for some California small businesses. In connection with COVID-19, the CA Dept. of Tax and Fee Administration (CDTFA) is offering tax relief for eligible businesses impacted by the virus restrictions. Business owners who file CDTFA returns for less than $1 million will be granted automatic 3-month extensions on payments and returns originally due between Dec. 1, 2020, and April 30, 2021. Small businesses having under $5 million in taxable annual sales or larger businesses in sectors hit by operational restrictions of the virus can apply for a 12-month, interest free payment plan to defer payment of up to $50,000 of sales and use tax liability. Contact your Linkenheimer CPA with questions.

By Linkenheimer LLP|2020-12-16T17:45:36+00:00December 16th, 2020|business, ca, california, New Tax Laws, small business|0 Comments

SB 1447 Credit Opened Up (And Going Fast)

We wanted to make sure you were aware of a potential California credit that just opened up that you might qualify for. If you do qualify, we recommend filing ASAP as the credit is on a first come first served basis and will go fast.

Credit only applies to California small businesses that meet the following qualifications:

Employed 100 or fewer employees as of December 31, 2019, and

Suffered a 50 percent decrease or more in income tax gross receipts (generally, all income less returns and allowances), when comparing second quarter 2020 to second quarter 2019.

Employers may receive a credit of $1,000 for each net increase in qualified employees from April 1, 2020 through June 30, 2020, compared to July 1, 2020 through November 30, 2020

For more information, see below or contact your Linkenheimer CPA:

https://www.cdtfa.ca.gov/taxes-and-fees/SB1447-tax-credit.htm

By Linkenheimer LLP|2020-12-04T20:37:36+00:00December 4th, 2020|small business|0 Comments