American Rescue Plan (ARP) Act of 2021 Notes and Highlights
The American Rescue Plan Act of 2021 (the “ARP”) is the latest in Coronavirus relief legislation. On March 10, 2021, the House of Representatives passed the bill as amended by the Senate. President Biden signed the ARP into legislation on March 11. Below is a summary of the provisions that will have a direct impact […]
Tax Treatment of PPP Loans – Where Do We Stand?
When the CARES Act was passed in March 2020, one area that remained uncertain was the tax treatment of the Paycheck Protection Program (PPP) loan forgiveness and whether it would be treated as taxable income to borrowers who had this debt discharged. The way this forgiveness would be handled potentially affected the millions of businesses […]
Paycheck Protection Program Round Two – Are You Eligible to Pursue a Second Loan?
On Monday, January 11, 2021, the U.S. Small Business Administration (the SBA) along with the Treasury Department re-opened the Paycheck Protection Program (PPP) for both new and existing borrowers. This article focuses on existing PPP borrowers and outlines the steps to take to apply for a second draw PPP loan. Business principals considering a PPP […]
New SBA Questionnaires for PPP Borrowers with Loans $2 Million and Above
On October 26, 2020, the U.S. Small Business Administration (SBA) issued a notice that it intends to release two new forms relating to borrowers’ good faith certifications that current economic conditions made the Paycheck Protection Program (PPP) loan necessary to ongoing business operations. The new documents are Form 3509 – Loan Necessity Questionnaire (For-Profit Borrowers) and […]
Paycheck Protection Program (PPP): Beware of Email Scams
The United States Small Business Administration (SBA) has issued a warning about email scams related to the Paycheck Protection Program (PPP) and its borrowers. Borrowers are reporting receiving emails from “sba-attorneys.com” that inform the recipient PPP funds were issued to them erroneously and action must be taken to avoid “potential criminal liability.” This email is […]
SBA Procedural Notice for PPP Loan Forgiveness
On July 23, 2020, the Small Business Administration (SBA) issued a procedural notice to lenders participating in the Paycheck Protection Program (PPP) concerning the loan forgiveness application process. The notice informs lenders that beginning August 10, 2020, they may begin submitting forgiveness applications through an online platform. The notice states that the SBA intends to […]
PPP Loan Updates – What Businesses Need To Know
On July 4, 2020, President Trump signed a new law extending the deadline for applying for a Paycheck Protection Program (PPP) loan to August 8, 2020. As the program was initially set to expire on June 30th, this extension provides potential borrowers additional time to access the program under its existing terms. Currently, it is […]
Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010)
Following significant backlash from business owners, members of Congress, accountants, academics and others, yesterday, Congress passed H.R. 7010, otherwise known as the Paycheck Protection Program Flexibility Act of 2020, and is expected to be signed into law by the President, today, June 4, 2020. H.R. 7010 is a bill that modifies the CARES Act in […]
Updated PPP Good-Faith Certification Guidance
(Updated May 14, 2020) On May 13, 2020, the Treasury Department updated its Frequently Asked Question list to provide guidance regarding the much talked about “good-faith certification” that each borrower must make on its Paycheck Protection Program (PPP) application. Specifically, in order to obtain PPP funds, the borrower must certify that “Current economic uncertainty makes […]
Paycheck Protection Program and Emergency Economic Injury Disaster Grants Re-Funded
Today, April 24, 2020, President Trump signed into law an amendment to the CARES Act relating to additional funding for the Paycheck Protection Program (PPP), Emergency Economic Injury Disaster (EIDL) grants, and other disaster loans. Specifically, the amendment provides for an extra $310B in funding for PPP and $10B for EIDL grants. Additionally, $50B in […]