Tax MonitorCoronavirus/COVID-19Initial regulatory interpretation of the Flexibility Act changes to the PPPJune 11, 2020 The Small Business Administration (SBA) began its interpretation of the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) with the issuance of its seventeenth interim final rule related to the Paycheck Protection Program (PPP). The Flexibility Act includes significant changes to the PPP and loan forgiveness provisions of the CARES Act. On June 10, 2020 the SBA published… Remote Signature - IRS Provides Temporary Relief via Notice 2020-42June 8, 2020 In order to assist in processing of plan distributions and loans (whether or not COVID-19 related), the IRS is providing temporary administrative relief by allowing flexibility for remote signatures from retirement plan participants and beneficiaries and spouses. This change relates to the existing requirement that a plan representative or a notary public must physically witness the signatures of… Telephone Cooperatives May Be Eligible For PPP LoansJune 8, 2020 Telephone cooperatives that are exempt from federal income taxation under section 501(c)(12) of the Internal Revenue Code may be eligible for PPP loans if they meet the sized standards and other eligibility requirements of the PPP. On Friday, June 5, 2020 the Small Business Administration (SBA) Issued its Sixteenth interim final rule: “Business Loan Program Temporary Changes; Paycheck Protection… Congress Approves Much Needed Changes To The PPPJune 4, 2020 Last night the Senate passed House Bill 7010, the Paycheck Protection Program Flexibility Act (the "Act"), which for the most part provides substantial relief to recipients of loans under the Paycheck Protection Program (PPP). The President is expected to sign the Act into law. The Act changes the PPP and the forgiveness provisions of the CARES Act. Summary Big take-aways:
SBA PPP Loan Reviews Pose Risks For Both Borrowers and LendersMay 28, 2020 It is well known that the quality of a loan portfolio is dependent on the quality of the loan files. That is certainly true of loan portfolios created under the Paycheck Protection Program (PPP). Documentation will be the key to ensuring positive outcomes for both borrowers and lenders. The Small Business Administration (SBA) has indicated its intention to review many loans made under the PPP.… New PPP Guidance Continues Promotion of ForgivenessMay 27, 2020 Recent guidance from the Treasury Department (Treasury) and the Small Business Administration (SBA) continues to promote an inclusive definition of forgivable expenses. On May 22, 2020, Treasury published its fourteenth interim final rule related to the Paycheck Protection Program (PPP): “Business Loan Program Temporary Changes; Paycheck Protection Program-Requirements-Loan Forgiveness”… Making Extended Deadlines for Safe Harbor and Reporting OfficialMay 21, 2020 The Treasury Department issued a rule implementing changes in the Paycheck Protection Program (PPP) eligibility safe harbor and the lender reporting deadlines previously authorized in the Paycheck Protection Program Loans Frequently Asked Questions (FAQs). On May 20, 2020, Treasury issued its Thirteenth interim final rule, “Business Loan Program Temporary Changes; Paycheck Protection… A Practical And Expansive Approach To ForgivenessMay 18, 2020 The Small Business Administration (SBA) issued the "Paycheck Protection Program Loan Forgiveness Application” and instructions (App). Later today, Bob Tweel will be publishing an article summarizing the App’s features. This post highlights a few significant procedural features of the App and some apparent efforts to make the forgiveness calculations easier and more expansive. Procedural features… PPP Treatment Of Past Size Certifications That Excluded Non-U.S. EmployeesMay 18, 2020 The Small Business Administration clarified the treatment of borrowers that submitted size certifications that excluded the non-U.S. employees of the borrower and its foreign affiliates under the Paycheck Protection Program (PPP). On May 18, 2020, the Treasury Department (Treasury) issued its twelfth interim final rule on the PPP: “Business Loan Program Temporary Changes; Paycheck Protection… PPP Forgiveness ApplicationMay 16, 2020 The Forgiveness application produced by Treasury answers several questions about the forgiveness process: PAYROLL COSTS The application states that borrowers are eligible for forgiveness for payroll costs paid and payroll costs incurred. This indicates that both costs incurred and costs paid should be eligible for forgiveness. Payroll costs are considered paid on the day that paychecks are… Heroes ActMay 16, 2020 Late last night the House passed the Heroes Act, H.B. 6800, which tries to expand the scope of the Paycheck Protection Program and does provide some necessary technical corrections. The Act also changes other key provisions and definitions, the reasonableness of which should be debated and cross-checked carefully. However, one change in the Act should be highlighted to ensure it was intentional:… UPDATED Certifier Beware: Certifications & Liability Under the False Claims ActMay 15, 2020 Mark Twain once observed that while history does not repeat itself, “it rhymes.” The federal government’s response to COVID-19 is likely to follow a familiar pattern: (a) the federal government will continue to provide massive amounts of financial aid in an effort to stave off the worst economic effects of the crisis; (b) some of those funds will be allocated to entities that the public perceives… |
|
© 2024 Jackson Kelly PLLC. All Rights Reserved.