On October 8, the SBA released Form 3580S, a simpler loan forgiveness application for PPP loans of $50,000 or less.

According to Secretary Steven T. Mnuchin, “The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs. Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the c Read More >>

The SBA released two new applications for PPP forgiveness, as the follow-up to the PPP Flexibility Act that recently passed in Congress. The SBA developed a simplified application, the EZ application, which is three pages, and the regular application is now five pages. To use the EZ application, you must meet one of the below criteria:
  1. you are a self-employed, independent contractor or sole proprietor and have no employees or
  2.  you did not reduce the wages of your employees by
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More changes, but more flexibly! Now signed by the President, the PPP Flexibility Act protects and promotes the original intent and goals of the Paycheck Protection Program: to help borrowers reach full, or almost full, loan forgiveness. While things are still not yet final, here’s what we know right now:

The Changes:

  • The Act changes the 75% payroll expenditure requirement to 60%, allowing borrowers to use 40% of funds on other allowed uses such as rent and utilities.
  • Borro
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The SBA and Treasury Department announced today, May 13, 2020, the following as it pertains to safe-harbor certification:

  1. Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue:

Any borrower that, together with its affiliates, rec Read More >>

Treasury and SBA issue new guidance on Paycheck Protection Program

The SBA and Treasury Department has extended the deadline to repay PPP loans from May 7 to May 14. Borrowers now have until May 14, 2020 to decide whether to return PPP funds within a safe harbor period provided by the SBA.

 

Here’s what you need to know:

  • In the recently added Question #43 in the Treas
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Late yesterday, the IRS released Notice 2020-32, clarifying how the IRS will treat expenses paid with funds from the Paycheck Protection Program (PPP).

The PPP provides 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during the COVID-19 crisis. If the employer maintains payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities is Read More >>

 

The COVID-19 pandemic continues to present new challenges for small businesses and relief programs continue to pose new questions. What am I eligible for? When should I apply? When can I expect funds? If you are an independent contractor, or a gig worker, here’s what you need to know.

The Paycheck Protection Program (PPP) provides $349 billion in forgivable loans to help small businesses stay afloat during the COVID-19 crisis. You are eligible for a PPP loan if you are Read More >>