RVDA Joins Effort to Exempt PPP Loan Proceeds from State Taxes
RVDA has joined with RVIA, several state RV associations, the Marine Retailers Association of the Americas, and other allies to get certain states to comply with Paycheck Protection Program (PPP) tax forgiveness as originally intended by Congress. Congress has exempted forgiven PPP loans from federal income taxation. However, several states remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both. RVDA signed on to several letters to states last week requesting quick action to fix the problem. For more information, click here.
SBA PPP "Second Draw" Loans : for the latest information click here.
SBA FAQs on PPP Loan Forgiveness
The Small Business Administration (SBA) continues to update its Frequently Asked Questions (FAQs) document that focuses on the Paycheck Protection Program (PPP) loan forgiveness process. The FAQs provide guidance on what types of payroll expenses are eligible for forgiveness, including questions about commissions and bonuses, group healthcare benefits, and retirement benefits. RVDA associate member blumshapiro has issued more information on the process, which is available here.
- PPP Loan Forgiveness Applications: for guidance on preparing PPP loan forgiveness application from RVDA associate member Somerset CPAs and Advisors, click here.
- RVDA COVID-19 Dealer Needs Survey: To help document the need for RV dealers to recieve PPP loans in March & April, click here.
- For special guidance for dealers with more than $2 million in PPP loans from Somerset, click here.
RV Sales & Service as Essential Services
As states and localities modify stay at home orders, dealers may find Department of Homeland Security guidance useful if questioned on essential service status by state or local officials.
- Department of Homeland Security (DHS) guidance to state and local governments on essential workforce (see vehicle services under transportation section (p. 13) click here.
- State and local emergency declaration contacts in each state, click here.
- RV campgrounds status from Campendium.
RVDA and RVIA and the National Association of RV Parks & Campgrounds sent letters to all 50 state Governors and the Department of Homeland Security urging them to recognize the RV industry and campgrounds as essential businesses as they implement measures in response to the COVID-19 virus. For dealerships that provide essential services and that determine they can and want to remain open, these letters can be a resource to use with state and local officials.
Families First Coronavirus Response Act: Employer Tax Credits
IRS FAQ: Payroll Tax Credits Available for Eligible Employers
Information on the Families First Coronavirus Response Act. This economic stimulus plan to address the impact of COVID-19 includes many provisions which apply to employers, such as paid sick leave for employees impacted by COVID-19 and those serving as caregivers for individuals with COVID-19. There are two provisions providing paid leave to employees forced to miss work because of the COVID-19 outbreak: an emergency expansion of the Family Medical Leave Act (FMLA) and a new federal paid sick leave law. The leave provisions went into effect on April 1, 2020.
This law provides refundable tax credits for employers who are required to provide Emergency Paid Sick Leave and Emergency Paid Family and Medical Leave. These tax credits are allowed against the employer portion of Social Security taxes. The law allows the Secretary of Labor to exclude to exempt small businesses with fewer than 50 employees if the required leave would "jeopardize the viability of their business." For guidance from the IRS on implementation, click here.
SBA Disaster Loan Program Available for Small Businesses Impacted by COVID-19
The Small Business Administration will work directly with state governors to provide targeted, low-interest loans to small businesses that have been severely impacted by COVID-19. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Find more information on the SBA’s Economic Injury Disaster Loans here.