ppp loan forgiveness update

In general: The GOOD news is that you have 10 months from the end of your covered period to apply for forgiveness. April 21, 2020. The U.S. Small Business Administration (SBA) released guidance Tuesday confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on Oct. 31. CLICK HERE. Congress just passed legislation that creates funding for additional Paycheck Protection Program (PPP) loans for small businesses. Automatic PPP loan forgiveness has been floated a couple of times. In addition to improving his clients’ accounting and finance operations, Doug frequently serves as the link between company owners and outside advisors including attorneys, CPAs, investment bankers, appraisers, and personal financial advisors. He is skilled in identifying and integrating the full range of financial and non-financial business issues in contract negotiations and resolution of business decisions. Frequently asked questions What’s the biggest loan I can get? One of the gateways to using the EZ Forgiveness Application or using FTE Reduction Safe Harbor 1 on the full Application is proving: Showing that sales were reduced from the pre-February 15 level, or as compared to the prior year, can help you justify that your business was negatively impacted, but you must start by defining which government actions impacted your business. It has been awhile since we updated our clients and friends about the Payroll Protection Program (PPP). For example, if your covered period ends on November 30, 2020, you have until September 30, 2021 to apply for forgiveness before loan repayment begins. This procedure also states that you can deduct the expenses in 2020 if you forgo forgiveness of the loan. 6 New PPP Loan Forgiveness Updates. Yesterday evening, the Small Business Administration (SBA) dropped another one: it … HEADS UP: The payroll services are working hard to generate reports to support your PPP Forgiveness Application, but their quality is still very inconsistent. Inc. describes the Need for the Federal Reserve to step up and help the Main Street Lending Program in THIS ARTICLE published August 28, 2020. To our Clients and Friends, Last Friday (May 15, 2020), the Small Business Administration released its initial PPP Loan Forgiveness Application and related instructions. Regardless of whether you applied for forgiveness, the expected forgiveness amount will reduce those expenses on their 2020 filing. If you need 24 weeks to use all loan proceeds on qualified expenses AND you do not plan to cut FTE’s, use the 24-week period. Expect them to drag their feet. PPP Loan Forgiveness Calculation Form. If you used most of the loan proceeds in 8 weeks AND do plan to have reductions in FTE’s, use the 8-week period. Why banks are putting PPP forgiveness on the back burner, Proactive Risk Management Planning Guidelines, 5 Steps to Create a Solid Total Reward Mix, Fahrenheit Advisors Taps Executive to Lead Richmond, VA Human Capital Management Practice, “an inability to return to the same level of business activity as the borrower was operating at before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention (CDC), or the Occupational Safety and Health Administration related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.”. Recently, the Small Business Administration (SBA) released additional guidance to clarify the deferral period for Paycheck Protection Program (PPP) loan payments (FAQ #52) and simplify the loan forgiveness application process for loans of $50,000 or less (IFR). In conclusion, businesses will need to calculate your forgiveness amount of your PPP loan, regardless of when you plan on submitting the application. Your lender MUST make a decision on your application for forgiveness within 60 days. This Procedure states that those denied will have the option to take those expenses in 2021 or have the option of amending their 2020 return to include them. PPP Loan Forgiveness Update As of November 17, 2020, the IRS released a new Ruling and a new Procedure in regards to Paycheck Protection Program (PPP) loans. Several reasons…the main one being their hope that some sort of automatic forgiveness as mentioned above will pass, thus reducing their workload. Borrowers are permitted to delay payment of payroll taxes even if they are planning to seek loan forgiveness. When completing SBA Form 3508 for loan forgiveness, include the eligible non-cash compensation payments described above on lines 6, 7, and 8 of PPP Schedule A. New applications were not accepted after August 8, 2020, most earlier loan recipients completed their 8-week covered period over the summer, and the pace of revisions to the program finally slowed down. The IRS has ruled that any forgiven part of a PPP loan is exempt from being taxed as a “discharged debt.” This information is current as of November 18th, 2020. If you have any questions, please call MMNT at 860-643-1001. Even if you received your PPP loan before the PPP Flex Act was released on June 5, 2020, you still have 10 months after your covered period ends to apply for loan forgiveness. The banking community is also cautious about opening their portals only to have the government change the rules once again. Not yet, though Treasury Secretary Mnuchin had floated this idea some time ago and it had made its way into several bills that never passed. Update Regarding PPP Loan Forgiveness. Prior to the PPPFA, borrowers with forgiven PPP loans were not eligible for the CARES Act’s payroll tax deferral. The Paycheck Protection Program Flexibility Act includes changes that should bring a sigh of relief for business owners who continue to struggle to … Right from the start, the Paycheck Protection Program (PPP) has been full of surprises. Monday: 8:30 am – 5:00 pm Tuesday: 8:30 am – 5:00 pm Wednesday: 8:30 am – 5:00 pm Thursday: 8:30 am – 5:00 pm Friday: 8:30 am – 5:00 pm Saturday: Closed Sunday: Closed, MMNT Certified Public Accountants 160 Chapel Road Suite 301 Manchester, CT 06042 Email: help@mmnt-cpa.com Phone: 860.643.1001 Fax: 860.533.0405, Formerly known as Montovani, Murray, Nemphos and Tierinni, LLC, Matthew J. Tierinni, CPA Karl J. Badey, CPA, MST Philip S. Nemphos, CPA, CVA, Audits – Reviews – Compilations – Agreed-upon Procedures, 2021 Annual Report Instruction Form for Connecticut LLCs, Click here for the MMNT Employment Application. What’s New? As of November 17, 2020, the IRS released a new Ruling and a new Procedure in regards to Paycheck Protection Program (PPP) loans. Example. Heidi, the sole owner and worker, operates her business as a C corporation. PPP Loan Forgiveness Update November 19, 2020 Last night, Wednesday, November 18, 2020, the IRS issued a Revenue Ruling stating regardless of when the PPP Loan Forgiveness is submitted and there is a reasonable expectation the forgiveness will occur in the future, then the correlating PPP Loan expenses are non-deductible for the 2020 tax year. Our experts stand ready to help you with your loan as well as your unique finance and accounting needs – Experts@FahrenheitAdvisors.com. Most recently, it came up in the updated version of the HEROES Act passed in the House last week. Any tax planning or estimates will need to take forgiveness amount into consideration. As of June 5, 2020, a new bill was signed into law by the President to expand the PPP loan forgiveness rules. Revenue Ruling 2020-27 provides guidance on PPP participants who have applied for forgiveness for their loans and have not received an indicator of the amount being forgiven. This makes sure that the payments escape the $20,833 cap per individual and add to your forgiveness. August 29, 2020 | Kristine A. Tidgren. Here are the key takeaways from recent CARES Act PPP provision updates: You have 24 weeks (rather than 8) to spend PPP funds on labor, interest, rents and utilities. The SBA’s FAQS on PPP Loan Forgiveness, as updated on August 11, 2020, are available here. Sure that the total amount of the loan for forgiveness, as updated on August 11, 2020 we! Into consideration: October 28, 2020: we have been burned before, time. 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