Don't Let Tax Time Get You Down! We have resources to help!
Additional Resources You Can Use!
These one pagers are easy-to-understand explanations of IRS forms and business calculations to save you money!
Links to Internal Revenue Service Forms & Material
In response to the COVID-19 public health pandemic, Congress passed several bills in 2020 to provide business relief, particularly for small business owners such as family child care providers. One program that is available for FCC providers is the Paycheck Protection Program (referred to as the PPP). This is a "forgivable loan" - in other words, a grant - if the use of the loan complies with eligible spending for the money.
In general, this means at least 60% of the funds are used for payroll related costs and 40% for fixed costs such as mortgage interest, rent, utilities, software used for your business (e.g., for record-keeping or supporting other business operations), perishable goods (such as food costs), expenses for PPE, cleaning supplies, and other expenses related to social distancing and public health requirements related to COVID. FCC providers do not need to have employees to receive a PPP loan! As a sole proprietor, you are considered an "employee" for the purposes of PPP!
In December, Congress passed legislation that separated the PPP program into two programs.
Below are resources to learn more about First and Second PPP forgivable loans.
You may also be interested in:
Recorded Webinar. How Family Child Care Providers Can Take Advantage of the New SBA Loan and Grant Programs (by Tom Copeland, January 23, 2021. This is a 90 minute webinar.)
Links to SBA PPP resources:
COVID-19 Economic Injury Disaster Loans. The U.S. Small Business Administration offers low interest loans to small businesses, including family child care providers. Unlike the PPP program, the Economic Injury Disaster Loans (referred to as EIDL) are not forgivable. The interest rate for family child care homes is 3.7%. Payments are deferred for one year (although interest accrues). The loan is for 30 years, but can be paid back sooner if the borrower chooses to do so.
Targeted EIDL Advance funds of up to $10,000 (which are grants, not loans) will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding. Applicants may qualify if they:
Applicants do not need to take any action at this time. The SBA will reach out to those who qualify.
Employee Retention Tax Credit. For family child care providers that have an employee, you may also qualify for an employee retention tax credit. Read this one pager on the Employee Retention Tax Credit and talk to your tax preparer to see if you can claim this tax credit.
Other Resources from Tom Copeland
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COVID-19 Child Care Information - NJ Child Care Agencies
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