At MABE International Advisors, we are attentive to this new stimulus package and second PPP loan, for its correct application and application with our clients.
President Trump signed on December 27, 2020, the COVID Relief & Omnibus Agreement just before the pending government shutdown.
This new economic stimulus brings with it great support for companies, personally, and extensions in loans. There are new regulations for the second round of PPP and changes for those that applied in the first round.
For Business:
- Expansion and expansion of the PPP
- Provides $ 20 billion to restart and extend EIDL grants
- $15 Billion Grant Program for Live Venues, Theaters, Museums, Zoos.
- Expanded and improved employee retention credit.
- Tax credit to support employers offering paid sick leave.
For individuals:
- Stimulus checks will be up to $ 600 per adult per child, and possibly up to $ 2,000.
- Improved unemployment benefits through March 2021, at $ 300 per week.
- Low Income Housing Tax Credit strengthened.
- Enhanced Earned Income Tax Credit and Child Tax
- Credit that can be applied retroactively to 2019 income
100% deduction for business meal expenses for 2021 and 2022 - Lower tax rates for manufacturers of beer, wine, and spirits.
Extensions:
- The cancellation of the mortgage debt will not be considered tax income and extends for five years.
- Extension of the Tax Credit for New Markets Work Credit and Opportunity (WOTC)
- Alternative energy tax credits extended.
PPP Second Round:
- Modifications to give greater benefit to non-profit organizations, restaurants, live venues, independent cinemas and cultural institutions.
- Simplification of forgiveness for loans of $ 150,000 or less
- Deductibility of expenses paid with PPP
- The amount of the credit will be 2.5 times the average monthly payroll cost and for code 72 industry entities (accommodation and food services) it will be 3.5 times the average monthly payroll cost
First-time PPP applicants:
- 500 or fewer employees.
- Eligible sole proprietors, independent contractors and freelancers.
- Any business that averages fewer than 500 employees per physical location and has a NAICS code of 72
Non-profit, including churches. - All loans are subject to review by the SBA
- 1% interest rate for small businesses
- If there is no forgiveness, payments are deferred 10 months after the covered period
- Loan maturity:
– Before June 5 – 2 years
– After June 5 – 5 years
Second-time applicants:
- 25-30% drop in gross revenue in any calendar quarter of 2020 compared to the same quarter of 2019
- 300 employees or less
- Based on the calendar quarter.
- Loans of $ 150,000 or less will only require self certification to demonstrate the decrease in income and the rest will have additional requirements for supporting documentation.
- All will be subject to review by SBA, randomly for younger ones.
We are a tax accounting and financial and business advisory firm based in Houston, TX, with more than 25 years of experience. Our goal is to support our national and international clients to achieve their financial, operational and accounting objectives.
We offer a wide variety of tax planning services for both companies and individuals. Tax planning can save you time and money.
Rodolfo Maya
CEO & Founder
MABE International Advisors, Inc.
Tel. + 1-281-741-3691
MABE International Advisors, Inc.
11511 Katy Fwy Suite # 640
Houston, TX 77079
Tel. 281-741-3691
Hours: Monday-Friday 9 AM 5 PM
OFFICES IN MEXICO
Tampico, Tamps
Loma Azul 207
Col. Lomas de Rosales
Tampico, Tamps., México
Tel.: +52 (833) 217.85.00 al 02
Querétaro, Qro.
Rufino Tamayo No. 7-101
Fracc. Pueblo Nuevo
Corregidora
Querétaro, México
Tel: +52 (442) 225.32.71
Monterrey, NL
Dr. Jose Luna Ayala #204 1er. piso
Col. San Jerónimo
Monterrey, Nuevo León, México
Tel: +52 (81) 2317.48.80
