Late Start To Tax Season & 4 More Small Business News Stories You Need To Know
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Welcome to another week of Merchant Maverick’s essential news roundup for small business owners.
A delayed tax season and anomalous PPP loans topped our news list for small businesses this week. Read on through for this week’s top five must-know stories for small business owners:
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IRS Pushed Back The Start Of Tax Season
Tax season will begin on February 12 this year — instead of late January as usual — as the IRS will begin accepting returns then. The federal filing deadline is still set for April 15, however.
The IRS said that the delayed start is so that the agency can “update and test its systems to reflect late-year tax changes approved by Congress.” Additionally, the February 12 start date ensures that filers have gotten their latest stimulus check before filling out 2020 tax returns.
Why this matters to you: Even though tax season starts later, it’s still important to get your return in earlier. The IRS is anticipating that those with refunds will receive it within three weeks of filing. Especially as 2020 has been a cash crunch for many, getting every little bit of help is crucial. The SBA has flagged 4.7% of the 5.2 million loans made during the first round of the Paycheck Protection Program (PPP) as having “anomalies” that are “mostly data mismatches and eligibility concerns.” Because these errors can cause issues with the second round of the PPP — which is currently in-process — the SBA said it will provide lenders with additional guidance on how to deal with flagged applicants. As of Tuesday, the second round of the PPP has seen 400,000 approved loans that total $35 billion. Why this matters to you: If your account has been flagged by the SBA, you may wind up in a “holding queue” during the PPP’s second round. This means that a lender might not have approved your application, or it may take extra time to process. Further reading: Small-Business Owners Promised More PPP Loan Application Help, The Wall Street Journal Common, a co-living company, announced five cities it will work with to build an “office-plus apartment complex” aimed at attracting digital nomads. These five cities are: New Orleans; Bentonville, Arkansas; Ogden, Utah; Rocky Mount, North Carolina; and Rochester, New York. Common’s resources to aid these cities include design expertise and marketing help. Exact details on what co-working amenities these new complexes will have are unknown. However, they are estimated to feature 100-200 units and construction of the first location is set for late 2021 or early 2022. Why this matters to you: COVID has led to a rise in the popularity of a work-from-home workforce. Expect to see more projects like this one as cities look to target remote workers in need of fresh scenery. Further reading: Remote workers are flocking to Hawaii. But is that good for the islands? The Guardian A survey of chief marketing officers has found that social media has been a crucial tool for businesses throughout the pandemic. Per the survey, social media spending among companies has increased from 13.3% of marketing budgets of February 2020 to 23.2% in June 2020. That equals a hefty 74% rise. The digital focus looks to continue into 2021 as well. 60.8% of the CMOs surveyed said they have “shifted resources to building customer-facing digital interfaces” while 56.2% say they are planning to “transform their go-to-market business models to focus on digital opportunities.” Why this matters to you: As lockdowns have become the norm, it’s crucial for small businesses to tap into digital methods to reach and connect with customers. Whether this means more social media activity or opening a digital storefront, digital looks to be the way forward for businesses everywhere. Further reading: Guide To Social Media Marketing, Merchant Maverick A new study by JPMorgan Chase Institute found that the first round of PPP funding covered just 3.8 weeks of expenses for the average small business last Spring. Retail businesses were particularly hit hard as their PPP loans covered just 2.1 weeks of expenses on average. The study additionally found that Black- and Latino-owned small businesses were also particularly affected — PPP funding was often limited for these minority-run businesses because they are less likely to have employees. Why this matters to you: While the PPP has been a lifeline for some small businesses, it’s certainly not the be-all-end-all savior. Small businesses across the US must continue to innovate as we push through what is hopefully the closing months of an already too long pandemic. The PPP isn’t the only government-funded stimulus avenue small businesses can take. The SBA’s EIDL program can also help struggling businesses. Learn more about this program via our FAQs post: AppHarvest, a startup that has built three indoor farms in the Kentucky hills of Appalachia, just delivered its first harvest: Beefsteak tomatoes. The company’s efforts aim to help economically suffering local communities by turning coal country into an agricultural hub. In the next four years, AppHarvest hopes to have 12 indoor farms up-and-running. “We are determined to build a climate-resilient infrastructure to offer folks a delicious tomato that is sustainably grown right here in Appalachia with 100% recycled rainwater and zero chemical pesticides, making it better for both them and the environment,” Jonathan Webb, the startup’s founder and CEO, said in a press release.Anomalies Found In Hundreds Of Thousands Of PPP Loans
5 Cities Are Set To Build For Remote Workers
Survey Finds Social Media Marketing Has Been Important During COVID
PPP Loans Covered Less Than A Month Of Expenses
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Jared Beilby
Small Business Data Researcher; Credit Card Analyst & Reviewer at Merchant Maverick
An expert in neobanking and business credit cards, Jared has been researching and writing about small business finance since 2018. His data studies have been cited in a number of media outlets, including MSN, Cheapism, and NBC. He holds a Bachelor of Arts in Journalism from George Fox University.
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