On Aug. 24, the Small Business Administration (SBA) and Treasury issued the latest interim final rule update to the Paycheck Protection Program (PPP) that seeks to clarify guidance related to owner-employee compensation and non-payroll costs. This guidance has been long-awaited and clears up several questions borrowers have had about forgiveness. Here are the main points.
The Small Business Administration (SBA) and Treasury released an updated Paycheck Protection Program (PPP) FAQ on Aug. 4 in an effort to address PPP loan forgiveness issues that have arisen as borrowers begin to complete their applications. The 23 FAQs address various aspects of PPP forgiveness including general loan forgiveness, payroll costs, non-payroll costs, and loan forgiveness reductions. Here is a brief overview of some of the most notable clarified guidance.
When Matt Moore and his business partner Chance Adams started their craft beer bar 9 years ago, there was no plan for the business to take the place of Matt’s landscaping day job of 20 years. But, just three years later, they opened Martin City Brewing and have since added four restaurants throughout Kansas City to the mix. Today, Matt runs the business as the chief executive officer (CEO), fully transitioning out of landscaping life and into that of restauranteur and entrepreneur.
In the midst of the uncertainty and instability that the COVID-19 pandemic has created for businesses and individuals, some relief is available for taxpayers in the form of deductible losses thanks to the preexisting Internal Revenue Code (IRC) Section 165(i).
President Trump has signed a five-week extension to the Paycheck Protection Program (PPP) which was unanimously agreed upon last week by the U.S. Senate and House of Representatives in an effort to continue providing relief for small businesses hit hard by the pandemic.
While some recipients of the Paycheck Protection Program (PPP) may be breathing a sigh of relief at the extended covered period implemented by the PPP Flexibility Act (passed on June 5), borrowers should be taking a proactive approach to preparing documentation and developing a strategy for their forgiveness application.
On June 4, 2020, the Senate passed with a unanimous vote, and the president is expected to sign, the Paycheck Protection Program Flexibility Act. The bill drafted by the House extends certain provisions of the Paycheck Protection Program (PPP) to provide small businesses with relief in the timeframe and use of their PPP loan funds.
On May 28, 2020, in a nearly unanimous vote, the U.S. House of Representatives voted to extend certain provisions of the Paycheck Protection Program (PPP) to provide small businesses with relief in the timeframe and use of their PPP loan funds.
On May 23, the Small Business Administration (SBA) issued an interim final rule for the Paycheck Protection Program (PPP) that included the loan forgiveness application guidance released May 15, as well as other updated guidance.