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:
- Payroll costs
- Nonpayroll costs
- Wage and headcount reductions
Meanwhile, legislation has been introduced to expand and extend the PPP loans. Some key provisions still under debate would:
- extend the PPP application deadline for small businesses from August 8 to December 31;
- allow some small businesses to apply for second PPP loans; and
- simplify forgiveness.
The deductibility of expenses paid with PPP loans that are forgiven is still in question. Over 170 business groups, including the American Institute of CPAs, have urged Congress to include a technical correction addressing the tax treatment of loan forgiveness in the 4th economic stimulus relief package currently under consideration.
Reach out to our team at MWB for any questions you may have on anything above or ANY impact you are seeing to your business during this time.