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 [...]
Amidst the chaos created by the COVID-19 pandemic, much of corporate America has been concentrating on how to obtain Paycheck Protection Program (PPP) funds, and then making sure they are adhering to the ever-changing rules on forgiveness. For these companies, a key question is now – how do we account for these funds? Accounting [...]
On May 28, 2020, the House of Representatives passed the Paycheck Protection Program Flexibility Act, nearly unanimously (417-1). Most importantly this bill would extend the forgiveness period for PPP funds from 8 weeks to 24 weeks. Though the final time period is unknown, it appears very likely that the Senate will take up legislation that [...]
On May 11th, 2020, Julie Welch, Steve Browne, Cara Smith, and Preston Herman recorded a webinar titled “PPP Loan Forgiveness & Business Interruption Claims”, which is available for free to all members of the Missouri Bar Association via rebroadcast on May 26th, 2020 and immediately for self-study at the below link. The webinar is a [...]
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. [...]
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 [...]
On April 14th, 2020, Julie Welch, Steve Browne, Cara Smith, and Preston Herman recorded a webinar titled “CARES Act Cash & Business Interruption” which is available for free to all members of the Missouri Bar Association via rebroadcast on April 27th, 2020 and immediately for self-study at the below link. The video recording, PowerPoint presentation [...]