IRS Guidance on Deductions of PPP Loans

A recent guidance issued by the Internal Revenue Service and the US Treasury specifies that businesses may not deduct costs covered by Paycheck Protection Program loans if they expect their debt to ultimately be forgiven, a decision that stands to impact the 2020 tax filings of small business owners in particular. The recently released guidance…

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CFA Webinar on COVID and PPP Loan Forgiveness

Next week on Thursday, November 19, DDIFO will host another exceptional and timely webinar sponsored by the Coalition of Franchisee Associations (CFA) from 2:00 – 3:00 PM EST. While the country recovers from the elections, the prospects of a virus vaccine are much improved, but the effects of COVID-19 continue to shut down franchises across…

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SBA Circulating “Loan Necessity” Questionnaires

The Small Business Association (SBA) last week began sending out a new questionnaire, the Paycheck Protection Program Loan Necessity Questionnaire (SBA Form 3509), to businesses that received PPP loans in excess of $2 million during the coronavirus pandemic. The agency is demanding new details about individual business operations in order to justify the aid and…

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SBA Simplifies PPP Forgiveness

Notwithstanding whether or not Congress will pass as new relief bill and re-fund the Paycheck Protection Program as referenced above, the Small Business Administration (SBA) last week released a simpler loan forgiveness application and process for program (PPP) loans of $50,000 or less. In concert with the Department of the Treasury, the SBA said the…

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PPP Payroll Period Will Soon Expire

Absent further action by Congress to extend a further financial lifeline to small businesses, the period in which employers are required to maintain payroll as a condition of Paycheck Protection Program (PPP) loan forgiveness is coming to a close (24-weeks since first receiving a payment). Unfortunately, businesses that have reopened, but are not yet financially…

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SBA Releases New FAQ on Loan Forgiveness

Speaking of the Paycheck Protection Program, in conjunction with the Department of the Treasury, the Small Business Administration (SBA) this week released an updated Frequently Asked Questions (FAQ) guidance for businesses seeking forgiveness of their PPP loans. The FAQ provides plain language direction regarding such items as: payment requirements where a borrower submits a loan…

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SBA Updates PPP Loan Forgiveness Application

The U.S. Small Business Administration and Department of the Treasury this week released a second application form for Paycheck Protection Program loan participants to use in applying for loan forgiveness along with important new guidance. In light of the changes implemented by the PPP Flexibility Act (PPPFA), which increased the covered period from 8 to…

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Congress Passes PPP Reforms

In a major victory for small businesses across the nation, and restaurants in particular, the U.S. Senate passed the Paycheck Protection Program Flexibility Act on Wednesday evening and sent it to the President, who signed it into law late yesterday. The legislation (H.R. 7010), which passed the House last week by an overwhelming vote of…

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SBA “Finalizes” Forgiveness Program Again

Last Friday night, the Small Business Administration (SBA) issued an Interim Final Rule (IFR) to govern the forgivability of Paycheck Protection Program (PPP) loans. The IFR provides that forgiveness is available for payroll costs, including bonuses and hazard pay, paid OR incurred during the Payroll Covered Period for employees up to the compensation ceiling of…

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US House Passes PPP Flexibility Act

Notwithstanding the above, more changes will likely be coming again regarding the Paycheck Protection Program and its loan forgiveness provisions, as the US House yesterday passed the Paycheck Protection Program Flexibility Act (HR 7010) and sent it to the US Senate. The legislation, if passed by the Senate and signed into law by the President,…

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