The Paycheck Protection Program Flexibility Act (H.R. 7010) was signed by the President on June 5, 2020. It provides businesses who received or will receive a Paycheck Protection Program loan with more flexibility to use their funds and have their loans forgiven.
By James Krech, Audit Senior
It’s no surprise we are currently experiencing unprecedented, uncertain, and unnerving times. As business owners, executives, and managers, your first priority could be tending to the business, identifying all the hardships that are currently present or that could arise in the near future, and making some hard decisions as to how to weather the storm. This response is certainly crucial to ensure the wellbeing and future success of the company and your employees, and there are many opportunities available for you to explore, which we will get into shortly. However, there is something just as equally important as supporting your company, if not more so, and that is caring for yourself. (more…)
The Paycheck Protection Program (PPP) launched in early April with little guidance provided to both borrowers and lenders. Many businesses acted quickly to determine their maximum loan amounts and submit their applications before funds would run out. Recently, there has been scrutiny related to certain recipients of the funds. In light of this, we want to ensure you are aware of the certifications that borrowers were attesting to on their loan applications. Specifically, borrowers were representing that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant”. (more…)
The Setting Every Community Up for Retirement Enhancement (SECURE) Act is the biggest retirement planning law in decades. However, when all is said and done, the new law may have just as significant an impact on estate planning, especially if younger individuals are in line to inherit IRAs or qualified retirement plan accounts.
Key SECURE Act provisions
The SECURE Act includes noteworthy provisions for both individuals and businesses. Let’s focus here on a summary of the key tax law changes for individual retirement-savers. (more…)
Update May 28, 2020
House passed the Paycheck Protection Program Flexibility Act today. The Senate is expected to vote next week but likely the Senate bill will have different provisions than the House approved today.
- The legislation extended the Covered Period to 24 weeks and reduced payroll spending requirements from 75% of loan funds to 60% of loan funds, giving businesses more flexibility in deciding how to allocate the emergency funds.
- Journal of Accountancy – House passes bill that would relax PPP forgiveness requirements
There is quite a bit of uncertainty with businesses given the global coronavirus pandemic. This uncertainly also means that a company’s value has been impacted since uncertainly creates risk and increased risk lowers value. What is this doing to a business owner? What are they thinking and how are they navigating through all of this? (more…)
Please be aware of potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration (SBA): https://www.sba.gov/document/report–sba-programs-scams-fraud-alerts
Links in emails and texts. Those few words, in the context of fraud, likely lead you to think of a range of potential threats to your business. If you’ve addressed the risk appropriately, you’ve trained your employees that such communications may even appear to come from management, others within your organization, or from known vendors and customers. However, these types of attacks are likely to increase in times of crisis, when curiosity, empathy, philanthropy, and fear push people to seek new information, help others in need, and find ways to protect themselves. (more…)
The CARES Act contains several provisions to get cash directly into the hands of taxpayers who are either currently employed or not working. These sources of cash include:
- Economic Impact Payments (Cash Rebates)
- Distributions from retirement plans such as 401(k) or IRA accounts
- Unemployment benefits
- Emergency Sick and Family Leave is required under the Families First Act