SOME DEADLINES COMING UP. ACT FAST!
Let’s do a recap of all the government programs available to you.
Please note that there are many details not discussed below. These are the general guidelines.
First PPP
Eligibility: Any small business employing not more than 500 employees per location.
How it must be used: You must use the funds at least 60 percent for payroll and 40 percent for non-payroll costs such as rent (to a third party), costs to mitigate covid, utilities, purchases of supplies and food.
Potential amount: Generally, 2.5 times your pre-Covid average monthly payroll including tips.
Deadline for applying: Extended to May 31. You should do this now!
How to apply: Call Eric at Independence Business Consulting at 248-924-2410.
Note: You must spend the first PPP money before you can receive the second PPP.
Second PPP
Eligibility: Must have used or will use the first PPP. Experienced a 25% or greater drop in sales in 2020 relative to 2019
How it must be used: You must use the funds at least 60 percent for payroll and 40 percent for non-payroll costs such as rent (to a third party), costs to mitigate covid, utilities, purchases of supplies and food.
Potential amount: Generally, 3.5 times your pre-Covid average monthly payroll including tips.
Deadline for applying: Extended to May 31. You should do this now!
How to apply: Call Eric at Independence Business Consulting at 248-924-2410.
EIDL loans
Eligibility: 300 or fewer employees.
How it must be used: Pay for working capital and operating expenses.
Potential amount: Maximum $500,000
Deadline for applying: No deadline.
How to apply: Call Eric at Independence Business Consulting at 248-924-2410.
Note: An EIDL is a loan – not a grant. Current terms are: 3.75 percent fixed with 30 year payback.
Michigan Grants
These are all used up and no longer available.
PPP forgiveness
Eligibility: If you received a PPP loan, you must apply for forgiveness otherwise it is taxable.
Deadline for applying: Approximately 16 months after obtaining the PPP funds.
How to apply: Contact Michele at Kallas for the required paperwork.
Note: the amount of PPP forgiveness should be confirmed before ERTC is calculated.
ERTC (Employee Retention Tax Credit)
Eligibility: Virtually all restaurants and bars in Michigan are eligible. See article in this newsletter for details.
Potential amount: Unlimited, based on 2020 and 2021 payroll that was not paid with PPP funds.
Deadline for applying: Any time within 3 years.
How to apply: Contact Michelle at Kallas for the required paperwork.
Note: ERTC will affect your personal and business returns which, if filed, will have to be amended.
RRF (Restaurant Revitalization Fund)
Eligibility: Federal program with 28.6 Billion allocated. Virtually all restaurants and bars in Michigan are eligible.
Potential amount: Maximum $5 million per location. Based on the difference between your 2019 sales and your 2020 sales reduced by any PPP money received.
Deadline for Applying: Applications start May 1 and this program runs until funds run out.
How to apply: You can do this one yourself or contact Kallas or IBC to do the work for you.
