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The following is from PKC 3 LLC, an Onalaska-based accounting firm with credit to the AICPA (American Institute of Certified Public Accountants).

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From Sheri Miller, Owner, PKC 3 LLC

As you may or may not know the stimulus bill was approved, creating a new round of PPP loans available and a lot of new helpful stimulus provisions to help businesses and individuals.  Here are some of the highlights I thought you may like to know ASAP.

Additional Eligible PPP Expenses

• Covered operation expenditures any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses
• Covered property damage costs a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation
• Covered supplier costs An expenditure made by an entity to a supplier of goods that are essential to the operations of the entity at the time at which the expenditure is made and is made pursuant to a contract, order, or purchase order in effect at any time before the covered period with respect to the applicable covered loan or with respect to perishable goods, in effect before at any time during the covered period with respect to the applicable covered loan
• Covered worker protection expenditures an operating or a capital expenditure to facilitate the adaptation of the business activities of an entity to comply with requirements established or guidance issued by (HHS), the (CDC), (OSHA) or any equivalent requirements established or guidance issued by state or local governments

• (i)            the purchase, maintenance, or renovation of assets that create or expand—
• (I)           a drive-through window facility;
• (II)          an indoor, outdoor, or combined air or air pressure ventilation or filtration system;
• (III)         a physical barrier such as a sneeze guard;
• (IV)        an expansion of additional indoor, outdoor, or combined business space
• (V)          an onsite or offsite health screening capability;
• (VI)        other assets relating to the compliance with the requirements or guidance as determined (by the SBA, HHS, and DOL);
• (VII)       covered materials
• (VIII)      particulate filtering facepiece respirators
• (IX)         other kinds of personal protective equipment

Deductibility of Expenses Satisfied with Forgiven PPP funds Selection of Covered Period for Forgiveness

1. no amount shall be included in the gross income of the eligible recipient by reason of forgiveness of indebtedness described in subsection (b),
2. no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and
3. EFFECTIVE DATE.—The amendment made by this subsection shall apply to taxable years ending after the date of the enactment of the CARES Act.

Applies to

• Subsequent Paycheck Protection Program Loans
• EIDL Grants & Targeted Advances
• Existing SBA loan payment relief
• Grants for Shuttered Venue Operators

Also Included

• Simplified Forgiveness Application for Loans up to $150,000
  • One page signed attestation of compliance
  • No complex figures or computations required
  • No documentation submitted
  • Three-year record keeping requirement
• Inclusion of Group Insurance Payments as Payroll Costs
• Loan Increases for Updated Regulations
• Calculations for Farmers & Ranchers

• Other small business support – EIDL program funding and new grants for shuttered venue operators

• Non-PPP SBA loan modifications

• Extension of the Employee Retention Tax Credit & Emergency Paid Sick Leave Credit
  

• Extension of pandemic unemployment programs ($300/wk through 3/14/21) Direct stimulus checks ($600 per individual & dependent)

• Rental Assistance & Eviction Moratorium Extension

• Student loan payment relief extension

• Education funding

• Child care grants

• Broadband emergency funds for low income families

Second Draw Loans

Basic General Eligibility:

• Any business concern, nonprofit, veteran organization, Tribal business, eligible self-employed individual, sole proprietor, independent contractor, or small agricultural cooperative
• Not more than 300 employees
• Not less than a 25% reduction in gross receipts in the first, second, third quarter in 2020 compared to the same quarter in 2019
• Applications submitted after 1/1/21 can also qualify by demonstrating not less than a 25% reduction in gross receipts in the fourth quarter of 2020 compared to the fourth quarter of 2019
• Received and used the full amount of the first PPP loan

Ineligibility:

• Publicly traded companies
• Lenders, rental real estate, life insurance companies, businesses in foreign countries, pyramid schemes, legal gambling, illegal activity, private clubs, most government-owned entitles, SBA loan packagers, certain convicted criminals, products or performances of a prurient sexual nature, prior SBA loan default, speculative businesses
• Entities primarily engaged in political and lobbying activities
• Business with certain Chinese and other foreign influences
• Shuttered Venue grantees