In anticipation of PPP borrowers beginning to file applications for PPP loan forgiveness, the SBA issued 23 new FAQs. While they do not cover all needed guidance, answers were provided in the following categories: General Payroll costs Nonpayroll costs Wage and headcount reductions Meanwhile, legislation has been introduced to expand and extend the PPP loans. [...]
Congress extended the Paycheck Protection Program (PPP) loan application deadline from June 30, 2020 until August 8, 2020. PPP loans are potentially forgivable loans designed to provide businesses with funds primarily to cover payroll costs during the 24 weeks following the loan (originally 8 weeks, but the program has been revised numerous times since its [...]
On June 16th, the SBA issued the REVISED Paycheck Protection Program (PPP) Loan Forgiveness Application and a new EZ Forgiveness Application. Generally, a borrower can apply to have PPP Loan amounts forgiven related to certain payroll and non-payroll costs paid during the “covered” period (generally either 24 weeks, or, if the loan was made before [...]
Wednesday evening, June 3rd, the Senate passed the House’s version of Paycheck Protection Program Flexibility Act of 2020 and now awaits President Trump’s signature. The bill passed unanimously Wednesday evening in the Senate and 471-1 last week in the House. Designed to make it easier for borrowers to get full, or almost full, forgiveness, the [...]
On May 15th the SBA issued the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions. This provides the forms borrowers need to apply for forgiveness of their PPP loans as well as the documentation lenders are required to collect from borrowers. Generally, a borrower can apply to have certain payroll and nonpayroll costs forgiven [...]
The May 14th safe harbor deadline (extended from the original date of May 7th) to repay Paycheck Protection Program (PPP) loans was extended until May 18th (SBA FAQ #47 issued 5/13/20). This extension is to give borrowers an opportunity to review and consider FAQ #46. See our blog post Good Faith Certification for PPP Loans. [...]
With the upcoming May 14th safe harbor deadline (extended from the original date of May 7th) to repay Paycheck Protection Program (PPP) loans, borrowers have been toiling with the documentation necessary to establish good faith representations on loan applications and the certification that “current economic uncertainty makes this loan request necessary to support the ongoing [...]
On April 30th, the IRS issued Notice-2020-32, stating the position that expenses funded by forgiven loan proceeds under the Paycheck Protection Program (PPP) are not tax deductible. The CARES Act did not specifically address whether generally allowable deductions would still be permitted if the loan was later forgiven, but the act and public officials’ comments [...]
Phase 3 of the COVID-19 stimulus package (the CARES Act) was just signed by President Trump. The CARES Act includes several income tax provisions that attempt to lessen the impact and encourage individuals and businesses to keep putting money back into the economy. See https://mwbpc.com/the-cares-act-business-highlights/ for the business highlights of the CARES Act. Business [...]
The Families First Coronavirus Response Act, the second coronavirus emergency aid package, was signed into law by President Trump on the evening of March 18, 2020. Only a small part of the legislation contains tax provisions; while the rest of the bill primarily focuses on funding for increased COVID-19 testing, providing free testing for everyone, [...]