The deadline to apply for first- or second-draw Paycheck Protection Program (PPP) is May 31, 2021. Here are some important reminders as the deadline approaches:

What is a PPP Loan?

A PPP loan is a loan provided by the U.S. Small Business Administration in response to the financial crisis many small businesses continue to face due to the ongoing COVID-19 pandemic.

PPP loans can be used to:

  • Help fund payroll costs, including benefits
  • Pay for mortgage interest, rent, utilities
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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 >>

On October 2, the SBA released a Procedural Notice regarding PPP Loans regarding transfer guidelines.

For purposes of the PPP, a “change of ownership” will be considered to have occurred when:

(1) at least 20 percent of the common stock or other ownership interest of a PPP borrower (including a publicly-traded entity) is sold or otherwise transferred, whether in one or more transactions, 1 including to an affiliate or an existing owner of the entity

(2) the PPP borrower sell Read More >>

Even with questions still lingering, many “covered periods” are coming to a close for PPP loan recipients, and business owners are looking for guidance on the forgiveness process. What are the next steps?
The Journal of Accountancy said it best, “The PPP was born in a flash — the U.S. Small Business Administration and Treasury launched the program in only a week — and forged in a flurry of interim final rules and frequently asked questions. That guidance often raised mo
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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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