Webinar: Unpacking PPP Updates from the Latest Stimulus Bill

The Consolidated Appropriations Act, 2021 (the Act) was passed by Congress on December 21 and includes some significant changes to the Paycheck Protection Program (PPP). The Act not only provides for a second draw for certain borrowers, but it includes a flurry of changes to existing PPP loans, highlighted by modifications to the tax implications,…

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Enhancements to the Employee Retention Credit

Monday, December 21st, 2020, Congress passed the Consolidated Appropriations Act of 2021 (the Act) which included several enhancements to the Employee Retention Credit (ERC). The most prominent change is that businesses that received a loan pursuant to the Paycheck Protection Program (PPP) are now eligible for the ERC. The ERC is designed to encourage businesses…

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The Top 10 PPP changes in the pending Bipartisan Emergency COVID Relief Act of 2020 

This week, details on the Emergency Coronavirus Relief Act were released and the proposed legislation includes significant updates to the Paycheck Protection Program (PPP). If approved, the bipartisan bill will make $267.5 billion additional funds available for PPP loans and $13.5 billion for Economic Injury Disaster Loans also overseen by the Small Business Association. Congress…

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AICPA Pushes Back on PPP Loan Necessity Questionnaire Response backed by 80 National Organizations

We previously discussed the U.S. Small Business Administration’s (SBA) issuance of two loan necessity questionnaires, Form 3509 (used by for-profit entities) and Form 3510 (used by nonprofit entities). This issuance was the first indication from the SBA as to how they might evaluate a business who borrowed $2 million or greater, together with their affiliates, “needed” their Paycheck Protection Program (PPP) loan. Upon applying for a PPP loan, all borrowers were required to…

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IRS Clarifies Tax Implications of PPP Funds

On November 18, 2020, the Internal Revenue Service (IRS) issued Revenue Ruling 2020-27 (Ruling) which provides needed clarity on a taxpayers’ ability to deduct eligible expenses for Paycheck Protection Program (PPP) loan forgiveness. The Ruling notes that a taxpayer that received a covered loan guaranteed under the PPP and paid or incurred certain otherwise deductible expenses listed…

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SBA Releases Proposed PPP Loan Necessity Questionnaires for Borrowers $2M or Greater

On October 26, 2020, the U.S. Small Business Administration (SBA) issued a notice seeking approval from the Office of Management and Budget (OMB) for the collection of information from recipients, together with affiliates, of Paycheck Protection Program (PPP) loans of $2 million or greater. The notice provides for the issuance of two loan necessity questionnaires,…

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Which PPP Loan Forgiveness Application is right for you?

The ever-changing guidance for the Paycheck Protection Program (PPP) loan has caused borrowers to rethink their strategies several times. Now that your Covered Period is over and you’re ready to apply for forgiveness, there’s yet another decision ahead – how to know which of the three PPP loan forgiveness applications is right for you. Aprio’s PPP…

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