SC Tax Extensions, New PPP Numbers and Webinar Recap, President Trump Announces Great American Economic Revival Industry Groups
Email to COVID-19 Mailing List: April 15, 2020
Today’s COVID-19 business information compiled by your SC Chamber Team includes: SC Tax Extensions, New PPP Numbers and Webinar Recap, President Trump Announces Great American Economic Revival Industry Groups
April 15th is usually Tax Day, but due to the COVID-19 crisis, many state and federal tax deadlines have extended this year.
At the state level, South Carolina has done the following:
- Income Taxes: SC has aligned with the IRS and extended the filing and payment due date for income taxes normally due between April 1st through July 15th to July 15th, 2020. That includes the April 15th individual income tax due date and estimated payments due June 15th.
- Other state taxes: Other state returns and payments normally due April 1st through June 1st will now be due June 1st, 2020. Penalty and interest will not be charged if payment is made by June 1st. This includes Sales and Use Tax, Admissions Tax, Withholding Tax, and other taxes that are filed with and/or paid to the SC Department of Revenue (SCDOR)
At the local level, recall that in letters sent last week to the Municipal Association of South Carolina (MASC) and the South Carolina Association of Counties (SCAC), the SC Chamber and 15 local Chambers of Commerce urged the associations to encourage their members to extend tax deadlines for businesses in cities and counties throughout the state in response to the COVID-19 crisis.
In response to the Chamber, MASC executive director Todd Glover noted that “many cities and towns across the state have already waived penalties for late payment of business license taxes or they have extended the deadline for paying the tax,” and “many cities and towns that assess a local hospitality tax and/or accommodations tax have also applied the same courtesies.”
The MASC provided us with the following list of the cities which have deferred payments:
Batesburg- Leesville, Beaufort, Camden, Central, Cheraw, Columbia, Cowpens, Forest Acres, Greenwood, Greer, Hardeeville, Hilton Head Island, Lancaster, Lexington, Myrtle Beach, Orangeburg, Reidville, Tega Cay, Travelers Rest
The MASC noted that this list is not complete because there may be cities that have deferred payments who did not respond. In addition, some cities’ business license deadlines have already passed, so they are not listed. Businesses should contact their local jurisdiction to find out if they’ve deferred payments.
Yesterday, the Small Business Administration (SBA) released updated loan approval numbers through April 13th for the Paycheck Protection Program (PPP), which first became available to businesses on April 3rd, 2020.
- Approval of 1,035,086 loans
- Approval of $247.5 billion in loans
- 4,664 lenders have processed approved loans
- Overall average loan size is $239,152
- Top five sectors receiving loans:
- Construction (13.73%)
- Professional, Scientific, and Technical Services (12.26%)
- Manufacturing (12.25%)
- Health Care and Social Assistance (11.27%)
- Accommodation and Food Services (9.18%)
In South Carolina:
- Approval of 14,273 loans have been approved
- Approval of $2.76 billion in loans
Today’s PPP Webinar Recap:
Today, David Lominack, SC Market President of TD Bank, and Fred Green, President, and CEO of the SC Bankers Association, presented a webinar for Chamber members on the PPP program, applications, and frequently asked questions.
Key points from the webinar include:
- As of Monday, April 13th, the national allocation was $250 billion for the PPP. SC has processed and approved $2.8 billion and 14,000 applications. To put that in perspective, last year, on a national basis, the Small Business Administration (SBA) was processing $2 billion per month.
- Since the PPP application approval by the Treasury and the program beginning on April 3rd, banks have been working 24/7 to build the infrastructure and process loan applications as quickly as possible.
- The loan application process finalizes, and the money is in hand as quickly as four to five business days IF everything is perfect. In essence, banks are running into many instances of errors in the paperwork or numbers that don’t match supporting documentation, both of which significantly delay the process.
To listen to the call in its entirety, click here.
Yesterday, President Trump announced the membership of several industry groups, including the National Association of Manufacturers (NAM), that he would rely upon as part of a task force to determine how best to reopen the American economy as we look toward recovery from the COVID-19 pandemic. The groups fall into 17 categories:
- Financial Services
- Food and Beverage
- Real Estate
- Thought Leaders/Groups
NAM President and CEO Jay Timmons is a member of the manufacturing group. The SC Chamber of Commerce is the South Carolina state affiliate for NAM, and we look forward to continuing to provide input to Mr. Timmons, as we have since the COVID-19 crisis emerged, as he considers how best to advise the President through the Manufacturing Group.