If your business obtained a PPP loan, whether you plan to repay the loan or to seek PPP loan forgiveness, you need to be fully aware of the revised terms and conditions established under the Paycheck Protection Program (PPP) Flexibility Act of 2020 (PPPFA). The PPP Flexibility Act (HR 7010) was signed into effect by President Donald Trump on June 5, 2020. This action changes and replaces the terms of PPP Act loans and adds flexibility that will be valued by many borrowers.
Understanding how you can spend PPP funds, and then getting your paperwork in order to document your compliance with the new guidelines, are critical to ensure your business qualifies for PPP loan forgiveness. Last week, Deferred Compensation News published The Much-Anticipated PPP Loan Extension. Expanding on the information provided in that update, we are sharing, “Congress Just Changed the PPP: Now What?” from AALU/GAMA.
This informative PDF, featuring Armstrong Robinson, Joshua Caron, and Alex Cisneros, all of AALU/GAMA, offers guidance for loan forgiveness calculation, worksheet examples, links to forgiveness applications, and helpful insights you may not readily find in other sources.
Are you aware that you must retain all records related to the PPP loan for six years after the date the loan is forgiven or repaid in full and that you must permit SBA representatives to access your records upon request?
Do you know the difference in how the Small Business Administration (SBA) distinguishes between “paid” and “incurred” costs?
Do you know how bonuses and hazard pay should be handled for purposes of PPP loan forgiveness?
Given that the PPP loan program has been created, launched, and already revamped, all within a matter of some 90 days, businesses, including the self employed and independent contractors, who received this much-needed stimulus support should consult a tax adviser before taking action … or failing to act in time.
#CARESAct #PPPLoan #PPPLoanForgiveness #PPPFA #COVID19
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.
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