Category Posts

Paycheck Protection Program (PPP) Changes

Mark Higley, vice president of Regulatory Affairs has analyzed the Paycheck Protection Program (PPP) Tax Treatment for Federal and State Taxes. Below is the summary of the federal taxes. For the full analysis and commentary, please click HERE. 

Federal

On January 6, 2021, the IRS released Revenue Ruling 2021-02 that declares its previous Notice 2020-32 superseded. Notice 2020-32 stated expenses paid with PPP loan proceeds expected to be forgiven were not deductible. However,...

According to a White House press release the Paycheck Protection Program will, for a period of 14 days, only be available to businesses with fewer than 20 employees. The 2-week period is scheduled to begin Wednesday, February 24, and is being implemented in an effort to make sure that these very small businesses do not get excluded from receiving money through the program.

In addition to that 2-week period to focus on very small businesses, other changes being made to the Paycheck Protection...

Be sure to sign up for our upcoming webinar, "VGM Government PPP and EIDL Update," on Feb. 9 at 2 p.m. CT!

Through the passage of yet another piece of legislation related to COVID-19 relief, the Consolidated Appropriations Act of 2021, additional funding has been added to two separate and popular programs designed to help small businesses access forgivable dollars to help them survive the COVID-19 pandemic. The two programs in question are the Paycheck Protection Program (PPP) and the...

There are a few things you need to know about the recent signing of the year-end legislative packge by former President Trump. The larger spending package did have changes to the Paycheck Protection Program (PPP) and Economic Injury Diasaster Loan Program (EIDL), as well as some tax implications. Below are two articles from Mark Higley and Craig Douglas regarding the updates. 

Please reach out to Mark...

Many of you attended a series of VGM webinars earlier this year where Craig Douglas and Mark Higley offered information about qualifying, application procedures, documenting use of funds, and applying for forgiveness. Mark also commented on the taxation issue and, at the time, the interpretation of the Treasury Department. The purpose of this update is to inform you that the IRS has clarified the deductibility of the Paycheck Protection Program (PPP) loan expenses. 

But...

This week, the U.S. Small Business Administration (SBA) unveiled a now simpler application and process for Paycheck Protection Program (PPP) loan forgiveness, especially for loans that were less than $50,000. This new streamlined process makes it easier for both the business that received the loan, as well as the lender that issued it. The SBA and the U.S. Treasury Department continue to look at ways to make this process easier but still prevent fraud and/or misuse...

The deadline for small businesses to apply for a Paycheck Protection Program loan has been extended through August 8th. The program has already provided small businesses around the country with over $500B in forgivable loans. The original deadline to apply for a loan was June 30, but as of that date, there were still over $130B left over in available funding for the popular program. On Saturday, July 4th, President Trump signed a bill that would extend the application deadline to August 8th. Any...

The Senate unanimously passed, by voice vote, the Paycheck Protection Program Flexibility Act (H.R. 7010), which seeks to improve the PPP and allow more flexibility for small businesses using the rescue loan funds. 

The bill was approved by the House on Thursday, May 28, by a 417-1 vote and has now been signed into law by President Trump.  

The legislation makes several changes to the Paycheck Protection Program for current borrowers, including...

The bill that was passed by the House last week that would make significant changes to the Paycheck Protection Program has now passed the Senate as well. It will now go to President Trump for signature. If the bill is signed in its current state, PPP loan recipients will now have nearly 6 months (24 weeks) to utilize the funds they receive, which is three times longer than the 8 weeks they initially had to spend the money in order to qualify for loan forgiveness. Recipients will also only have...