Paycheck Protection Program
PPP Resource Center
Last Updated: May 13, 2020
Current Sections (Click Link for Quick Access):
Preparing For PPP Loan Forgiveness (Updated 05/04/2020)
PPP Loan Forgiveness Calculator (Updated 05/04/2020)
Significant Test for PPP Eligibility (Updated 05/04/2020)
PPP and Potential Impact to Income Taxes (Updated 05/04/2020)
Updated PPP FAQ & Safe Harbor (Updated 05/13/2020)
Forgiveness Webinar Presentation (Updated 05/22/2020)
Forgiveness Webinar Video (Updated 05/22/2020)
Question? (Updated 05/05/2020)
You have likely heard in the media of some large businesses who have chosen to give back their PPP loan proceeds, deciding instead to look for other sources of funding. Initially, borrowers were required only to certify their need for funding based upon economic uncertainty. The Small Business Administration recently issued a second significant test that requires applicants to evaluate funding alternatives. Additionally, SBA will review any PPP loan in excess of $2MM prior to origination to make sure it meets this test. For borrowers who accepted PPP funds but now feel they have adequate funding from alternative sources, the SBA has created a limited safe harbor for applicants who repay the loan in full by May 7, 2020. Such borrowers will be deemed to have made the “economic uncertainty” certification in good faith, even if they can no longer make the certification in good faith based upon updated guidance and rules. Borrowers would still need to pay the accrued interest on the loan. Please feel free to contact us if you have questions.
While you may have heard that loan forgiveness will not be counted as taxable income, did you know that your eligible PPP expenditures will not be tax deductible? The IRS issued guidance on April 30th, which you can review fully here.
The Treasury Department and SBA published an updated FAQ. Click HERE to read more.