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:
As businesses move forward in applying for a second-draw Paycheck Protection Program loan, or PPP2, it is important to remember the maximum loan size is capped at $2 million for businesses, as well as their affiliates. That means the total amount a business and its affiliates can apply for is capped at $2 million. Businesses are also only eligible if collectively with their affiliates the employee count is below 300.
For purposes of the PPP loans, per the U.S. Small Business A Read More >>
The U.S. Small Business Administration (SBA) has seen an influx of fraud surrounding applications for federal aid. The most common fraud occurring is email phishing where a scammer impersonates the SBA via email with the goal of collecting personally identifiable information (PII).
Those who have applied for the SBA’s Economic Injury Disaster Loan Program seem to be at high risk for receiving phishing emails asking them to “verify their accounts”, but really, the scamm Read More >>
Employee Retention Tax Credit
Back in March of 2020, The CARES Act granted eligible employers a credit, the Employee Retention Tax Credit (ERTC), against employment taxes equal to 50 percent of qualified wages paid to employees who are not working due to the employer’s full or partial suspension of business or a significant decline in gross receipts.
YOUR ACTION IS REQUIRED:
The recent passage of the Consolidation Appropriations Act, 2021 has created an opportunity for c Read More >>
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 >>
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 SBA and Treasury Department announced today, May 13, 2020, the following as it pertains to safe-harbor certification:
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 >>
