Hot off the Press! The SBA just issued the following update to their frequently asked questions with clarification that PPP Loans below $2 million will meet the safe harbor rules and the loan will be determined to be necessary for the borrower. This had been ambiguous in prior guidelines from the SBA.
Many of you have received your PPP Loan Proceeds, or at least been notified that you have been approved. Also, many of you have been closed do to the various stay-at-home orders, so you are preparing to resume operations and using your loan amount. BWTP is here to assist you in documenting the use of the PPP Loan Proceeds.
The PPP Loan Application with the SBA asked applicants to certify that “current economic uncertainty makes this loan necessary to support the ongoing operations of the applicant.” A lack of clear guidance, the threat of penalties, and an imminent deadline combine to make the Paycheck Protection Program’s forgivable loans a potentially perilous subject for tax advisers. Recognizing this, the SBA is giving some reprieve to businesses who received the loans unnecessarily and want to escape criminal and civil l
The Paycheck Protection Program (PPP) provides key benefits to eligible borrowers. Yet borrowers are still faced with many unanswered questions concerning the program’s application. One key question was whether covered expenses giving rise to PPP loan forgiveness are deductible for federal tax purposes.