Borrower Accounting for PPP Loans

Although the legal form of the PPP loan is debt, some believe the loan is, in substance, a government grant. This has caused confusion on how borrowers should account for the loans under Generally Accepted Accounting Principles (GAAP). There is no guidance in existing GAAP that specifically addresses the accounting for forgivable loans obtained from,…

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Notice: Paycheck Protection Program has reopened.

The Paycheck Protection Program began accepting new applications July 6, 2020, at 9:00 AM EDT in response to the Paycheck Protection Program Extension Act. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program  

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New PPP Loan Forgiveness Applications

This article was published on June 18, 2020. The SBA has finally released updated Paycheck Protection Program (PPP) Loan Forgiveness Applications and instructions. You read that right, two forgiveness applications were released. The initially released PPP Loan Forgiveness Application (Form 3508) combined the instructions and the various parts of the application into a single 11…

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Economic Impact Payment Prepaid Debit Cards

The IRS is now sending out some taxpayer’s stimulus payments on prepaid debit cards. The debit cards arrive in a plain envelope from Money Network Cardholder Services. As a result, taxpayers may have accidentally thrown out their stimulus payments mistaking them for credit card offers or other spam mailing. IRS became aware of taxpayer concerns…

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PPP Forgiveness: The Latest Update

**This article was updated to reflect additional guidance from the SBA and Congress. The intent of the Paycheck Protection Program Flexibility Act of 2020 was to keep the original deadline for PPP applications as June 30, 2020. Further, the Payroll Costs 60% Requirement was clarified as not being a cliff. The article below was updated…

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PPP Loan Forgiveness: The Two New Interim Final Rules & What’s Next for Borrowers

On May 22nd, the Small Business Administration (SBA) issued the fourteenth and fifteenth Interim Final Rules, which add to what is known about Paycheck Protection Program (PPP) loan forgiveness and the SBA and lender review process. The fourteenth Interim Final Rule, “Requirements – Loan Forgiveness” focuses on, as the name suggests loan forgiveness, and the…

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Have You Considered the Employee Retention Credit?

If you did not receive a Paycheck Protection Program loan, you may want to consider the CARES Act Employee Retention Credit. The Employee Retention Credit (ERC) may offer a tax credit up to $5,000 per employee for wages paid from March 13 to December 31, 2020. It’s one of the relief programs within the Coronavirus…

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IRS Increases Health FSA Carryforward Limit and Cafeteria Plan Flexibility

In response to the changes caused by COVID-19, the IRS has provided additional flexibility for health flexible spending accounts (FSA’s), dependent care assistance programs, and employer health plans. Many employees take advantage of these programs (collectively known as “cafeteria plans”) to set aside pre-tax money for medical and dependent care expenses. However, decisions regarding these…

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SBA Issues PPP Loan Forgiveness Guidance

Click here for the Paycheck Protection Program – Loan Forgiveness Application The Small Business Administration (SBA) has issued the first major source of guidance surrounding Paycheck Protection Program (PPP) loan forgiveness via their Paycheck Protection Program Loan Forgiveness Application. The PPP provides funds to eligible borrowers in the form of loans, which are up to…

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