Many of you with PPP loans may not know about Employee Retention Credits (ERC). Under the original CARES Act from March 2020, you were not eligible to benefit from both the PPP loan and ERC. The Consolidated Appropriations Act passed at the end of December 2020 now allows those with PPP loans to take advantage… Read more »
There is a LOT to be covered within the newest COVID relief legislation. Following is a list of many of the key provisions contained in the Bill approved by the House and Senate and sent to the President on December 21, 2020. This bill was signed by the President on December 27. We note that… Read more »
In the past few days, the IRS and SBA have issued additional guidance. Here are some of the highlights: REVENUE RULING 2020-27: This IRS ruling amplifies IRS Notice 2020-32 and reiterates that taxpayers that received a PPP loan and that paid or incurred certain otherwise deductible expenses cannot deduct those expenses in the tax year… Read more »
There has been much anticipation that the SBA would announce some sort of automatic forgiveness for smaller Paycheck Protection Program loan Borrowers. The rumors were put to rest yesterday with the SBA issuing another Interim Final Rule. The IFR issued on October 8, “Additional Revisions to Loan Forgiveness and Loan Review Procedures” introduced a third… Read more »
We’ve been telling our readers since August that there is no rush to apply for forgiveness, and that no payments would be due for 10 months following the end of the borrower’s covered period. Apparently there has been confusion since many PPP promissory notes include language that set the deferral of loan payments at 6… Read more »
On August 4 and August 11, the SBA posted additional FAQs regarding PPP forgiveness matters. There are a lot of information and some examples included in these FAQs. Below, I attempted to extract the topics that have been the most debated/questioned. This “summary” is far lengthier than I prefer – but is organized for you… Read more »
This seems to be the mantra that we have been preaching for months – and “wait for it” remains the best advice we can give today. The process-in brief The Paycheck Protection Program (PPP) loan forgiveness process requires borrowers to submit applications for forgiveness to the bank (or other lending institution) that funded their PPP… Read more »
The much awaited Paycheck Protection Program Loan forgiveness application revision is now available! The current application, issued June 16, 2020, incorporates the many changes and interpretations that have been issued by the Treasury and SBA since the initial May 15 version had been released, including the significant changes to the program that were adopted with… Read more »
On Wednesday, June 10, 2020, the AICPA published Technical Questions and Answers (TQA) 3200.18, Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program providing guidance on the accounting for loan forgiveness under the Paycheck Protection Program (PPP). The TQA provides borrowers guidance in accounting for the forgiveness. Option… Read more »
Last night, on June 3, 2020, the Senate passed a bill which was passed in the House last week to provide flexibility for the Paycheck Protection Program. It is expected the President will sign the Bill.This Bill contains language which offers some additional important flexibility for the Paycheck Protection Program. The provisions included are: Extends… Read more »
For our readers who are closely following developments in PPP Loan forgiveness, we offer a brief update. Officially the most recent updates were on May 22 when two Interim Final Rules (IFRs) were released providing additional guidance to borrowers and lenders with respect to the forgiveness process. With those IFRs: We now understand more clearly… Read more »
The SBA released its PPP Loan Forgiveness Calculation Form Friday evening. Here is the link if you wish to review it. View the SBA PPP Forgiveness Application Here are step-by-step instructions for the loan forgiveness program. Some points should be made. The form is cumbersome! This will take some time to complete. The form yields… Read more »
