The NFIB Small Business Optimism Index rose to 99.8 in April, an increase of 1.6 points from March. The Optimism Index has increased 4.8 points over the past three months since January but a record 44% of owners reported job openings that could not be filled.

“Small business owners are seeing a growth in sales but are stunted by not having enough workers. Finding qualified employees remains the biggest challenge for small businesses and is slowing economic growth. Owners are raising compensation, offering bonuses and benefits to attract the right employees.”

NFIB Chief Economist Bill Dunkelberg.

Other key findings:

• Eight of the 10 Index components improved and two declined.
• The NFIB Uncertainty Index decreased one point to 80.
• Earnings trends over the past three months improved eight points to a net negative 7%.
• Owners have plans to invest in their businesses as the percentage of those planning to make capital expenditures in the next three to six months increased seven points to 27%.
• The percent of owners expecting better business conditions over the next six months fell seven points to a net negative 15%, surprisingly glum.

47% | Percent reported capital outlays in the last six months, down two points from March but 10 points above last year’s low. Of those making expenditures, 42% reported spending on new equipment, 25% acquired new vehicles, and 15% improved or expanded facilities.

6% | Prtcentage of those surveyed who acquired new buildings or land for expansion and 12% spent money for new fixtures and furniture. Twenty-seven percent plan capital outlays in the next few months. Hopefully supportive of improved productivity.

3% | Percentage of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up nine points from March. The net percent of owners expecting higher real sales volumes improved one point to a net 1%.

7% | Percentage of owners who view current inventory stocks as “too low” in April, up to four points. A net 5% of owners plan inventory investment in the coming months, up to one point from March.

Full report at NFIB.com | https://assets.nfib.com/nfibcom/SBET-Apr-2021.pdf (PDF)

Yesterday (March 17, 2021), the Internal Revenue Service (IRS) and Treasury Department pushed back the tax filing deadline by a month. Income taxes and payments will now be due May 17 instead of April 15.

(The information in this article was provided by the IRS, however, you should always refer to your tax advisor before making any decision regarding taxes.)

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities, Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

IRS Commissioner Chuck Rettig

• Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.
  
• This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
  
• Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
  
• Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov.
  
• Filing Form 4868 gives taxpayers until October 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.

In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

State tax returns

State filing and payment deadlines
vary and are not always the same as the federal filing deadline.

The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline.

The IRS urges taxpayers to check with their state tax agencies for those details.

Credit: GettyImages

First Draw PPP Loans

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
Learn more

Second Draw PPP Loans

Eligible businesses may apply for a Second Draw PPP loan.
Learn more

PPP Loan Forgiveness

Borrowers may be eligible for loan forgiveness.
Learn more

PPP Lender Information

Information and resources for lenders participating in the Paycheck Protection Program.
Learn more

PPP Data

Data and reports related to the Paycheck Protection Program.
Learn more

Apply for the Paycheck Protection Program

Find an eligible lender to apply for the Paycheck Protection Program.
FIND A LENDER
Use this SBA map

These links were supplied by the SBA. Before borrowing money from any source, seek advice from a trusted advisor with experience — preferably with the first round PPP.

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• First Draw PPP Loans for first time program participants
• Second Draw PPP Loans beginning January 13, 2021 for certain businesses who have previously received a PPP loan

The SBA is currently accepting Paycheck Protection Program PPP loan applications from participating lenders.

• Lender Match can help connect you with a lender.
• You can also view all lenders near you on a map.

PPP Reopened January 11

First Draw PPP Loans started on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Key PPP updates include:

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The new guidance released includes:

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
• Interim Final Rule on Second Draw PPP Loans.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares. 

$32 | The drop-off of $32 this year is blamed on the pandemic and related economic crunch.

“There is no question the pandemic has disrupted many aspects of Americans’ daily interactions and activities,” said NRF President and CEO Matthew Shay. “However, there remains a special significance around Valentine’s Day, and consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations,” he said.

Survey highlight | This year is the first time consumers listed small businesses as a top-five shopping destination since the question was added to the survey in 2015.

$10.77 | Average spent by parents on items for children’s classmates and teachers, down from $14.45 last year.

$8.47 | Consumers plan to spend an average of $8.47 on colleagues, down from $12.96 in 2020.

74% | Percentage of consumers indicating the pandemic will directly impact their plans for the holiday.

24% | Percentage of consumers who plan to gift their loved one with an evening out, the lowest in the survey’s history.

41% | Percentage of celebrants who are planning a special dinner or celebration in the comfort of their own home.

“Consumers still feel it’s important to spoil their loved ones in light of the pandemic,” Prosper Insights executive vice president of strategy Phil Rist said. “This year’s total and average spending figures are near record highs, as the second-highest in the survey’s history.”

39% | Online is the most popular Valentine’s Day shopping destination
29% | Department stores rank second
17% | Local small businesses and specialty stores tied at 17%

The survey of 7,882 adult consumers was conducted January 4-12 and has a margin of error of plus or minus 1.1 percentage points.

Credit | Jamie Grill via Getty Images

(Update: Monday, December 28, 2020)

On Sunday night, President Trump signed legislation for $900 billion in coronavirus economic aid and $1.4 trillion in government spending and preventing a government shutdown. Here are some highlights related to small businesses that are in the stimulus plan.

The “Second draw” PPP loans put more emphasis on very small businesses, including those that have the following:

• 300 or fewer employees AND
• Had at least a 25% reduction in gross receipts in one or more quarters of 2020 when compared to comparable quarters of the year before (with some caveats for seasonal and newer businesses).

What your business may be able to access:

There will be a new, simplified application for loans of $150,000 or less, including loans that have already been made but not forgiven.

As with any issue related to taxes or money, it is critical to get advice from a trusted tax, accounting, banking, or other professional before making financial decisions.

PREVIOUS POSTS IN THIS THREAD

• This is breaking news. The legislation must be signed by the President to become law. Most recent update: December 22, 2020. 5:04 PM
  
• According to Politico, Sen. Ben Cardin of Maryland, the top Democrat on the Senate Small Business Committee, said he believed the window for so-called Paycheck Protection Program loans should reopen within a matter of days “because that process is understood.”
  
• The timeline offered by the senior lawmaker indicated that the SBA and the Treasury Department face pressure to move quickly during the upcoming holiday week to revive the PPP, which was a major piece of the Covid-19 relief bill Congress passed this week.

• Recommended reading at the Journal of Accountancy:
  
  “The U.S. Senate and House of Representatives overwhelmingly passed a $900 billion COVID-19 relief bill Monday night that provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more than $300 billion in aid for small businesses”
  

• Lawmakers have agreed on a $900 billion Covid stimulus package (December 21, 2020).
  
• The legislation sets aside $284 billion towards forgivable small-business loans under a new iteration of the Paycheck Protection Program.
  
• Small businesses that took a PPP loan and saw their revenues fall by 25% will be able to obtain a second loan.
  
• Congress will also allow PPP borrowers to take tax deductions for covered business expenses.
  
• The legislation is complicated and you should always check with your accountant, financial advisor before making any assumption.

Here are more provisions in the legislation related to small businesses and the pandemic.

• Small businesses may receive a second PPP loan if they have fewer than 300 employees and can prove that their revenue has fallen by 25%.
• $284 billion will be targeted to forgivable loans through the Paycheck Protection Program.
• Generally, borrowers are eligible for PPP loan forgiveness if they apply at least 60% of the proceeds to payroll.
• The maximum amount for a second draw will be $2 million.
• The legislation also creates a simplified forgiveness application for businesses that took PPP loans under $150,000.
• Firms that received a cash advance through the Economic Injury Disaster Loan program also will no longer have to deduct the advance from their PPP loan forgiveness amount.

Again, the legislation is complicated and you should always check with your accountant or trusted financial advisor before making any assumption or actions. We will continue to update this page.

(Breaking story. Most recent version: Friday, December 12, 2020, 4:00 p.m., Eastern. For earlier coverage, see below.)

The Senate on Friday approved a one-week stopgap bill to fund the government, buying additional time for negotiators to reach an agreement on both a catchall government spending package and a coronavirus aid plan to address the economic toll of the pandemic. (President Trump has to sign the bill or funding runs out at midnight, and the government would shut down.)

Democratic leaders have said the starting point for talks should be a $908 billion bipartisan compromise being drafted by a group of moderates.

It would include $288 billion for the Paycheck Protection Program that extends loans to small businesses, and $300-a-week supplemental federal jobless payments until the spring. The proposal, for now, does not include direct payments from stimulus checks.

(Breaking story. Most recent version: Friday, December 11, 2020)

The $900-billion COVID-19 relief package from a bipartisan group of lawmakers has all but collapsed after Senate Majority Leader Mitch McConnell said GOP senators wi.. not support $160 billion in state and local funds as part of a potential tradeoff in the deal.

The proposal provides sweeping new funds for small businesses (via a renewed PPP loan program), healthcare providers, schools, and families suffering from the coronavirus crisis and the economic shutdowns.

According to the Associated Press, McConnell’s staff says the Senator sees no path to agreement on a key aspect of the existing proposal:

“A slimmed-down version of the liability shield that he wants for companies and organizations facing potential COVID-19 lawsuits in exchange for the state and local funds that Democrats want.“

Government Shutdown

The COVID-19 relief plan now threatens another pressing business: a must-pass government funding bill. If it doesn’t clear Congress, the lack of government funding would trigger a federal government shutdown Saturday. (The Senate approved a one-week delay.)

Mixed Messages

Trump’s top negotiator on COVID-19 financial aid, Treasury Secretary Steven T. Mnuchin, reported progress on Thursday before the package from the bipartisan senators group fell apart. “I think we’re making a lot of progress,” Mnuchin said.

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