The SBA has provided detailed guidelines on documentation in its recently released PPP Loan Forgiveness Application instructions on “PPP Schedule A”. We suggest taxpayers review these in detail and implement appropriate internal procedures to meet the various disclosure requirements.Read More
In the last three months, many employers have had significant decreases in their top line revenue and have attempted to cut costs to offset that revenue decrease. The IRS has provided relief to retirement plans through the CARES’s act to assist plan participants manage through these difficult times. Today, we wanted to share some strategies for managing cash flows as it relates defined contribution retirement plans from an employer perspective.Read More
Here we are at the end of May, and there is still no guidance that has come out under U.S. GAAP, which specifically addresses the accounting for loan forgiveness from the government under the Paycheck Protection Program (PPP). Due to the lack of such guidance at the current time, borrowers have two different ways they could account for PPP loans, as follows:Read More
The House is expected to vote next week on a stand-alone, bipartisan Paycheck Protection Program (PPP) bill. The measure, HR 6886, introduced by Reps. Chip Roy, R-Tex., and Dean Phillips, D-Min., would make a number of changes to the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s small business loan program.Read More
On May 13th, Meaden & Moore held a webinar titled “What You Need to Consider as You Seek Loan Forgiveness” to provide information concerning the Paycheck Protection Program through that date with a focus on loan forgiveness items. Since this is a topic that is on everyone’s mind, there were a significant number of attendees and in turn a lot of questions. We answered as many as we could during the webinar, and answered the rest via a follow up email to the participants with the questions we didn’t get to during the webinar.Read More
Alas, the SBA released on May 15, 2020 the Paycheck Protection Program (PPP) Loan Forgiveness Application along with detailed instructions. The application and its instructions address some of the questions that have to this point remained unanswered. Notably, the instructions include the following which seem to provide some clarification and flexibility in calculating the forgiveness amount:Read More
In only a few months, the COVID-19 pandemic has turned the world upside down. This paradigm shift is forcing all of us to re-evaluate how we shop, travel, and even work.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.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 automatically extended from May 7, 2020, to 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 companies have applied for and received funds.