Resources for Additional Information & Assistance
NC Rapid Recovery Loan
The deadline for applying for a NC Rapid Recovery Loan is Oct. 15, 2020. The loans are available to any NC-based small biz impacted by COVID that began operations before March 23. Loans are available for up to $250K with a 10 year loan term. More than $35 million in rapid recovery relief loans have been provided statewide to date.
Loans are subject to availability, so apply for yours through Mountain BizWorks asap.
NC Job Retention Grant
The N.C. Job Retention Grant may be able to offer assistance if your business or non-profit has experienced interruption due to the coronavirus pandemic, and you have not already received funds from the federal Paycheck Protection Program (PPP), the federal Main Street Lending Program, or the North Carolina Rapid Recovery Loan Program. Please click here to learn about eligibility requirements, frequently asked questions and to find the link for the application form.
NC COVID-19 Recovery Act Tax 1Q-2020 Credit
The Division of Employment Security announced June 30, 2020 that under North Carolina’s COVID-19 Recovery Act (S.L. 2020-3), employers will receive a tax credit towards their contribution to the state’s Unemployment Insurance Fund. The credit is equal to the amount of your contribution to the fund for the first quarter of 2020.
You do not need to do anything to receive this credit other than to file your 1Q2020 Tax and Wage Report. You must file your report to receive the credit.
Tax Credits for Covid-affected Businesses
If your business declined by 50% or more since the quarantine began, and if you did not receive a PPP loan, you may be eligible for Employee Retention Tax Credits of up to $5,000 per employee.
The IRS is just now rolling out the rules, and you can learn more by visiting their website at https://www.irs.gov/coronavirus/employee-retention-credit or calling your payroll preparer. Clients needing assistance can call us at 828-258-2323.
The CARES Act
The new Coronavirus Aid, Relief and Economic Security Act (CARES Act) will inject more than $2 trillion into the US economy. The 880 page bill will impact all parts of society, offering small business assistance, aid to local governments, healthcare, additional unemployment benefits, retirement fund rule relaxation, and changes to tax law. Here are some highlights of this complex economic stimulus package:
Tax Cuts for business
Tax Cuts for Individuals
What the CARES Act says about RMDs
The CARES Act waives required minimum distributions (RMDs) from certain defined contribution plans and individual retirement accounts (IRAs) for the 2020 tax year. This will not only give your portfolio the potential to grow in value but will also lower your taxable income and related tax liability for the 2020 tax year.
We want to remind you that these opportunities are still available. As always, reach out to us at 828-258-2323 if you would like assistance.
Funds for Small Businesses, non-profits, sole proprietors and self-employed
***There have been some revisions to the PPP program since its inception. Please visit the U.S. Dept. of the Treasury website by clicking here for the most up-to-date information.
For more details about any of these tax cuts or loans, please visit our website at CLKCPA.com or give us a call at 828-258-2323.