The Consolidated Apportionment Act of 2021, signed by President Trump in late December, authorized $285 billion of funding for a new round of PPP loans. Loans are available to borrowers that previously received a PPP loan and to first-time borrowers. The SBA released application forms last week and opened their lender portal this week to a limited number of lenders to help underserved businesses get first access to PPP funds.
The SBA’s Portal will open Friday, January 15th for lenders with assets under $1 billion, and opens Tuesday, January 19th for all other lenders. Eligibility requirements have changed from the previous program. (more…)
The COVID-Related Tax Relief Act of 2020 signed by President Trump on Sunday, December 27, 2020, offers many opportunities for borrowers. More implementation guidance is expected from both the SBA and Treasury Department regarding unanswered questions and issues that will develop as the program is implemented but for now, borrowers should consider how they may benefit from these provisions. (more…)
On December 21, 2020, Congress finally delivered much needed relief to American taxpayers. After many months of contentious negotiations, Congress passed, and President Trump signed into law, a $900 billion COVID-19 relief package with tax benefits for both individuals and business entities. Also included was a long-awaited change to the Paycheck Protection Program that will allow borrowers to deduct expenses paid with PPP funds as well as additional funding for another round of PPP loans.
We want to provide you with a brief summary of the key provisions of the bill. Watch your email and our website for additional information as we analyze the 5,600-page Consolidated Appropriations Act of 2021.
As always, please contact us if you have any questions. (more…)
The Paycheck Protection Program (PPP) has helped millions of businesses cope with the consequences of the COVID-19 shutdown. But, like any large and complex program, the PPP has also generated a lot of questions, particularly regarding the records borrowers must keep to qualify for loan forgiveness.
The rules governing PPP loan forgiveness cover a broad range of operational and financial areas and involve numerous tax and financial reporting documents. Some of the rules also have changed over time, further complicating the recordkeeping requirements. (more…)
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.
We have outlined the major provisions of the Act below. Please reach out to our COVID-19 Resource Team for further guidance or if you have any questions. (more…)
New Developments – 8/4/20
Treasury Department released new FAQ’s for PPP Loan Forgiveness (Updated Aug. 4) confirming existing guidance and addressing a few open issues, including the meaning of “transportation utility expenses.”
There has been much confusion due to a lack of detailed guidance related to a borrower’s requirement to “certify their need” for a PPP loan considering “other sources of liquidity”. Our previous blog post, SBA Announces Retro-Active Change to Paycheck Protection Loan Program, discussed this issue.
Earlier today, May 13, 2020, the SBA released FAQ #46 granting a safe harbor for many borrowers.
Under the “safe harbor,” all loans with an original amount of under $2 million will be deemed to have met the certification requirements in good faith. (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…)
New Developments – February 2021
Governor Newsom signed two bills on February 23, that will provide cash grants to qualified small businesses impacted by COVID-19 and cash (stimulus) payments to lower-income families. The Legislature is still negotiating a PPP/EIDL conformity bill that would allow businesses to deduct expenses paid with these loans/grants. It is hoped that this bill will be passed by the end of this week.
President Biden February 22, announced a series of changes to the Paycheck Protection Program designed to make the program more accessible to underserved borrowers. The changes:
- Starting Wednesday, February 24, for a two week period only, businesses with fewer than 20 employees can apply for loans
- The way loans are calculated will be revised so businesses without employees get more relief. Details to be announced later.
- Set aside $1 billion in PPP loan funds for businesses without employees in low- and moderate-income areas.
- The elimination of an exclusion that prevents business owners with non-fraud felony convictions from accessing the program.
- The elimination of an exclusion that prevents business owners who are delinquent on federal students loans from accessing the program.
- Non-citizen small-business owners who are lawful U.S. residents will be able to apply for loans using individual taxpayer identification numbers.
- The SBA reported Monday that it approved more than 1.9 million PPP loans for a total of $40 billion from Jan. 11 through Feb. 21. The application window for the current, $284 billion iteration of PPP is scheduled to close March 31.
- FACT SHEET: Biden-Harris Administration Increases Lending to Small Businesses in Need, Announces Changes to PPP to Further Promote Equitable Access to Relief