Getting your business the help it needs during COVID-19

Last updated January, 2021

Since the beginning of the COVID-19 pandemic, PADGETT BUSINESS SERVICES® has been at the forefront of this crisis, providing the necessary counsel and support to thousands of businesses in the U.S. We’ve been doing our part to stand by our clients during these challenging times, including helping more than 1,000 businesses secure nearly $60 million in Paycheck Protection Program (PPP) funding.

Here are a few ways Padgett is committed to aiding businesses during this crisis:

  • Providing tax planning advice to support business owners

  • Modifying our offices to accommodate virtual meetings and consultations

  • Offering in-depth understanding of PPP and other programs designed to aid small businesses

  • Furnishing counsel and support on difficult payroll decisions

A fresh infusion of economic stimulus to help businesses

At the end of 2020, the President signed into law a sweeping bipartisan stimulus package that including funding for a second round of PPP. The package also includes a simplified loan-forgiveness form for small businesses and allows businesses to fully deduct expenses made with PPP funds.

Understanding the benefits of PPP

The application process for the second round of PPP loans opened on January 11, 2021 for all eligible businesses. Publicly traded companies are not eligible for PPP funding, and if your business received a loan in 2020 and wants to apply for a second round of funding, it must have 300 or fewer employees and have suffered a loss in revenue of at least 25 percent for one quarter in 2020 when compared to the same quarter in 2019.

Here are some helpful links if your business is seeking the newest PPP information:

Seeking out other forms of assistance

In response to the COVID-19 pandemic, the federal government has enacted several programs aimed at easing the economic blow that resulted. Your business may be eligible for some of the aid offered through these various programs, including:

  • Economic Injury Disaster Loans (EIDL): Managed by the Small Business Administration (SBA), the EIDL program provides economic relief to businesses that are experiencing a temporary loss of revenue due to COVID-19.

  • Employee Retention Credit: Extended under the recent stimulus bill, this tax credit is designed to encourage employers to keep workers on their payroll through a refundable tax that is 70 percent of up to $10,000 in qualified wages paid to an employee experiencing economic hardship due to COVID-19.

  • SBA Express Bridge Loan: The program allows small businesses who currently have a business relationship with an SBA Express Lender to access $25,000.

  • SBA Debt Relief: The SBA will automatically extend relief in the form of making six months of payments on certain SBA loans on behalf of a borrower.

  • Shuttered Venue Operators Grant: Established by the recent stimulus package, the program includes $15 billion in grants to aid shuttered venues such as theaters, museums, zoos and aquariums, and similar organizations.

How Padgett can help

At Padgett, we’ve tried to be a steady and sure partner throughout the PPP process, and that includes the resulting loan forgiveness process. It’s important to know when to apply for forgiveness and the tax implications of doing so. In addition to releasing more funding to support businesses, the recent stimulus package allows for the deduction of business expenses paid with PPP funds.

If you’re a business owner, there are several ways you can help support your employees, including taking advantage of various tax programs and provisions. And in today’s socially-distant world of Zoom meetings and remote work, don’t forget to take advantage of perks like tax breaks on commuter costs and learn how to navigate the “Nanny Tax” when it comes to childcare.

Our trusted network of CPAs, Enrolled Agents and Tax professionals can help you get the guidance you need. Whether it’s applying for a PPP loan, navigating the loan forgiveness process or putting in place a sound business plan for 2021, reach out to an office near you to see how our team can lend a hand.

We help you look ahead

Many small business owners think of tax season as a time to look in the rearview mirror at the previous year. At Padgett, we help you also look through the windshield. Not only do we look at last years finances to calculate what you owe, but we help you get a firm understanding of what your next year is going to look like—before the tax season even begins. We want to be more than just a tax service—we want to be the proactive business partner that you deserve. We are motivated by helping your business