Paycheck Protection Program Changes
If you skipped getting the PPP disaster assistance because it seemed like a lot of work to just pay yourself and not your crew, now is the time to revisit that decision!
Now is your LAST chance to get 2 months of payroll for yourself AND your crew, even if you 1099 your crew.
Today, the U.S. Treasury Department released new guidance specific to fishing businesses.
Fishing boat owners can now count their 1099 crew as part of their payroll calculations. "A fishing boat owner may include compensation reported on Box 5 of IRS Form 1099-MISC and paid to a crewmember ... as a payroll cost in its PPP loan application"
Note, if your crew already received their own PPP loan, you cannot include them in your payroll calculations.
PPP applications must be submitted to the SBA by next Tuesday, June 30, so apply NOW (no later than Monday) with an approved SBA lender.
We've heard folks have had the best results with local community banks. The Cooperative Bank of Cape Cod will accept your PPP application even if you don't bank with them. The bank can help you with the application or you can call SCORE or a Navigator.
Loans made after June 5 will have 24 weeks instead of 8 weeks to use the funds and the PPP loan will be fully forgiven if the funds are used for payroll costs (at least 60%), interest on business mortgages, rent, and utilities, and you meet the forgiveness guidelines. There are allowances for Seasonal Employees.
Click here to view the Full Forgiveness Application.
New EZ application requires fewer calculations and less documentation. Details are available in the instructions to the new EZ application form (page 3).
You can use the EZ application if you:
· Are self-employed and have no employees; OR
· Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
· Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.