As an update to our June 2, 2020 blog entitled “SHOULD YOU APPLY FOR PPP LOAN FORGIVENESS NOW?” the U.S. Senate passed the House version of Paycheck Protection Program Flexibility Act legislation by voice vote with unanimous consent on Wednesday night (June 3, 2020). The bill now heads to President Donald Trump, who is expected to sign it.Read More
Hold on…. the U.S. House Passed H.R. 7010 to Provide Greater Flexibility for PPP Borrowers; Senate to Act Next
As Paycheck Protection Program (PPP) loan recipients try to understand all of the nuances of the loan forgiveness process, the rules are likely about to change. On Thursday, May 28, 2020, the U.S. House of Representatives passed H.R. 7010, a bill that would provide Paycheck Protection Program (PPP) loan recipients more flexibility in how they spend proceeds while still allowing for loan forgiveness. The bill passed with a nearly unanimous, bipartisan vote of 471-1. The bill changes several of the restrictions in the existing PPP. A similar measure to amend the PPP has been introduced in the Senate, which is likely to take up the issue this week.Read More
On May 20, 2020 the Ohio House of Representatives unanimously passed legislation granting a three-month amnesty to Ohioans who are delinquent in paying state taxes. House Bill 609 establishes a temporary tax amnesty program to forgive interest and penalties on delinquent taxes.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
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.