Category: Paycheck Protection Program

The U.S. Senate has passed the bipartisan Paycheck Protection Program Flexibility Act of 2020, which loosens several of the Paycheck Protection Program’s (PPP’s) more onerous restrictions regarding loan forgiveness. President Trump has signed the bill into law. The new law follows the May 22, 2020, release of an interim final rule from the U.S. Department of Treasury and the Small Business Administration (SBA) on PPP loan forgiveness requirements. Among other areas, that guidance addresses the calculation of full-time employees and… Read more ›

Last week, the Small Business Administration clarified which businesses can expect to be audited once they certify in good faith that they received Paycheck Protection Program loans based on economic need. The SBA also delivered requirements for Maryland employers whose furloughed workers refuse to accept a recall to work. Read more below. Good Faith Certification and the Safe Harbor Deadline Extension The goal of the Paycheck Protection Program since it was established in late March under the CARES Act has… Read more ›

The IRS has issued new guidance addressing a question that has lingered since the launch of the Paycheck Protection Program (PPP) — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible business expenses under Section 162 of the Internal Revenue Code (IRC). The guidance in IRS Notice 2020-32 doesn’t provide the answer borrowers hoped for, but that may yet come. The root of the question The Coronavirus Aid, Relief and Economic Security (CARES) Act created the widely… Read more ›

The Small Business Administration (SBA) has extended the repayment deadline for Payroll Protection Program (PPP) borrowers that wish to take advantage of the “good faith” self-certification of eligibility option. The deadline is now May 14, 2020. Companies that repay their loans by that date preempt the possibility of criminal liability if they’re subsequently found ineligible for PPP loans. The loans are intended to help small businesses with fewer than 500 employees weather the novel coronavirus (COVID-19) pandemic, but some large… Read more ›

The Senate has approved $320 billion in additional funding for the Paycheck Protection Program, the Small Business Administration’s business relief program that passed as part of the CARES Act on March 27, 2020. The PPP originally received $349 billion in funding to support businesses hurt by the COVID-19 pandemic. Funding quickly ran out however, as a surge in applications for relief and skyrocketing unemployment numbers reflected the significant need. The House of Representatives is expected to pass the legislation on… Read more ›

Thanks to CBM Supervisor Tom Hudson for developing the following article. On April 14, the Small Business Administration (SBA) released additional guidance that provided more information about the implementation of the Paycheck Protection Program (PPP) for self-employed taxpayers. Previously, it was not explicitly stated that taxpayers who file a Schedule C were included in the program although many interpretations of the SBA’s language indicated that they were eligible. The SBA did confirm through the most recent guidance that a taxpayer… Read more ›

On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. The Act provides for six options for businesses in search of relief, which are listed below for consideration: • Paycheck Protection Program… Read more ›

The Paycheck Protection Program application is now available for small businesses and not-for-profits that wish to apply for benefits under the Small Business Administration’s new disaster assistance loan program. The Paycheck Protection program, launched as part of last week’s Coronavirus Aid, Relief and Economic Security (CARES) Act, offers smaller employers financial relief which, when used for employee salaries, sick and medical leave, insurance, and mortgage and rent, will not need to be repaid. (Read our blog post with more in-depth… Read more ›

On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. As part of the CARES Act, the federal government has also provided for disaster assistance loans through the Small Business Administration…. Read more ›

The Setting Every Community Up for Retirement Enhancement (SECURE) Act is the first significant retirement-related legislation in more than a dozen years. It brings many changes that affect employers of all sizes, including some that could be particularly beneficial for smaller employers that sponsor retirement plans. Some of the changes, however, may increase the burden on employers. Here are some of the most important developments for employers, many of which took effect for plan years beginning after December 31, 2019…. Read more ›