PPP Archives - Wiss & Company, LLP

PPP Loans Become More Favorable for Small Business, Other Important Updates

Written on March 4, 2021. Posted in PPP, Small Business, State & Local Tax Services, Stimulus Package, Uncategorized.

By Travis Miskowitz, Director, CFO Advisory The Paycheck Protection Program (PPP) became more favorable to small business as the Small Business Administration (SBA) in cooperation with the Department of Treasury, revised the loan calculation for sole proprietors, independent contractors, and those that are self-employed increasing their chances of obtaining a higher loan amount in contrast to existing guidance. Other important updates were included in two new pieces of...

Biden Administration Targeting PPP Aid to Smallest Businesses – 2 Week Delay Starting Wednesday Morning

Written on February 23, 2021. Posted in Financial Planning, General Business, PPP, Small Business.

By Travis Miskowitz, Manager, CFO Advisory Early Monday morning, the Biden Administration announced it is instituting a 2-week period targeting Paycheck Protection Program (PPP) loans to small businesses only. The temporary freeze goes into effect Wednesday morning beginning at 9:00 am, and only small businesses with 20 or fewer employees will be eligible to apply for a PPP loan for the next 2 weeks. The move by the current Administration is an effort to provide much-needed funding...

SBA to Speed Up PPP Approval Process

Written on February 11, 2021. Posted in Financial Planning, General Business, PPP, Small Business.

By Travis Miskowitz, Manager, CFO Advisory In response to concerns from the small business community regarding delays and processing issues with the latest round of PPP funding, the SBA released a procedural notice on 2/10 implementing changes to speed up the loan approval process. As many as 30% of all PPP loan applications have been delayed due to Hold or Error codes as a result of stepped-up front-end compliance and verification checks. Late last week, we covered the issues causing...

PPP Processing Delays – More Communication Required from SBA

Written on February 5, 2021. Posted in Financial Planning, General Business, PPP, State & Local Tax Services, Tax, Tax Alerts.

By Travis Miskowitz, Manager CFO Advisory When the Small Business Administration rolled out the Paycheck Protection Program in 2020, there was an immediate need to stem the losses and financial difficulties that small business owners were facing due to the pandemic and government-mandated shutdown orders. The early days of PPP were fraught with processing issues, incomplete or inconsistent guidance, and a lack of reliable resources for small business owners to reference when applying...

Straight Outta Congress: How to Maximize the Employee Retention Credit (ERC) & Paycheck Protection Program (PPP)

Written on January 19, 2021. Posted in General Business, PPP, State & Local Tax Services, Tax, Tax Alerts.

By Travis Miskowitz, Manager, CFO Advisory This is a developing story; updates will be published as additional information becomes available. Update: March 3, 2021 As we enter March, we would like to remind our clients and friends that they may be eligible for 2 very beneficial programs: Employee Retention Credit (ERC) and a 1st Draw or 2nd Draw PPP loan. The ERC is a refundable credit which can now be claimed retroactively by PPP borrowers to 2020 if the company meets 2 main eligibility...

PPP “Yeah, You Know Me” – 3rd PPP Application Window Opening Soon

Written on January 8, 2021. Posted in PPP, State & Local Tax Services, Tax.

By Travis Miskowitz, Manager, CFO Advisory Late Wednesday evening, the U.S Small Business Administration (SBA) in coordination with the Department of Treasury, issued guidance for the revamped Paycheck Protection Program (PPP) authorized by the Economic Aid Act of 2020. The newly released guidance includes: Interim Final Rule (IFR) “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended” an 82-page consolidation of existing PPP guidance in the form of 24...

Breaking Down the Employee Retention Credit in the New COVID Relief Bill

Written on January 6, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Ilya Brodetskiy, Tax Manager Some significant updates are affecting the Employee Retention Credit, but there are still some important unknowns. Businesses that were ineligible for the ERC because they applied for PPP funding or who had over 100 full-time employees should reevaluate their eligibility based on the expanded program. The Consolidated Appropriations Act of 2021 introduced major changes to the Employee Retention Credit (ERC). The first change allows businesses that...

Show me the money…again! Congress agrees to $900B Emergency Coronavirus Relief Act of 2020

Written on December 21, 2020. Posted in General Business, State & Local Tax Services, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager, and Travis Miskowitz, Manager, CFO Advisory Congressional leaders are close to finalizing the next round of stimulus, referred to as the Emergency Coronavirus Relief Act of 2020 providing for $900 billion in government funds aimed at supporting small businesses and the ailing economy. The coronavirus relief bill is expected to pass with bi-partisan support, and the President is expected to sign the bill into law quickly. The relief...

Unintended Effect of PPP Loan Forgiveness: Reduction in R&D Credit

Written on November 19, 2020. Posted in Tax, Tax Alerts.

By Travis Miskowitz, Manager, CFO Advisory The Paycheck Protection Program (PPP) created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides loans to small and mid-size businesses to cover payroll and other specific costs during the coronavirus pandemic. PPP loans may be forgiven under particular circumstances, and are typically excluded from taxable income. Sounds simple—and if you focus on the question of payroll costs, it is. But companies that are interested...

Treasury and IRS Issue Guidance on Deductibility of Expenses Related to a PPP Loan

Written on November 19, 2020. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Michael Bodrato, Director of Taxes The US Treasury and the Internal Revenue Service (“IRS”) released guidance on November 18, 2020, in Rev. Rul. 2020-27 and Rev. Proc. 2020-51, clarifying the tax treatment of expenses where a loan received under the Paycheck Protection Program (“PPP”) has not been forgiven by the end of the year in which the loan was received. The IRS clarified in a notice issued on May 18, 2020, that since under the CARES Act businesses are not taxed on the proceeds...

SBA Releases Long-Awaited Loan Forgiveness FAQs

Written on August 5, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz At long last, the Small Business Administration (SBA) and the Department of the Treasury have released guidance addressing Paycheck Protection Program (PPP) loan forgiveness. This guidance can be relied upon as the SBA’s interpretation of Section 1106 of the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act), as amended by the Paycheck Protection Program Flexibility Act (Flexibility Act). Consistent with previous updates, the SBA has decided to provide...

PPP Flexibility Act Passes Senate, significantly decreases barrier to loan forgiveness

Written on June 4, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz The Senate unanimously approved H.R. 7010 – Paycheck Protection Program Flexibility Act of 2020. By passing the House bill, the Senate avoids a long and drawn out reconciliation process. The President is expected to sign the bill into law quickly. While the bill provides much needed flexibility to small businesses, there is one change that can significantly impact a borrower’s ability to achieve loan forgiveness. The tersely worded bill provides for only 7 bullet...

Latest PPP Loan Forgiveness Guidance Released: Fails to Address Two Key Requirements

Written on May 26, 2020. Posted in Financial Planning, General Business.

On Friday May 22nd, the Small Business Administration (SBA) and the Treasury Department issued two new Interim Final Rules (IFR): one covering Loan Forgiveness and the other covering Loan Review Procedures. The loan forgiveness guidance, which builds upon the loan forgiveness application and instructions that were released May 15th, still does not make changes to provisions for the 75/25 requirement to spend PPP funds on payroll and non-payroll costs, or the 8-week (56-day) covered...

PPP Loan Forgiveness Application – Overview of Required Documentation

Written on May 20, 2020. Posted in Financial Planning, General Business.

By Tricia Meola On May 15th, the Small Business Administration released the highly anticipated Paycheck Protection Program Loan Forgiveness Application. The application is lengthy, the calculations are complex, and the instructions aren’t the most straight-forward. At first (and second) glance, the application process is quite overwhelming! In order to assist you, we are going to break down the components beginning here with the four main areas of required documentation. Please...

SBA Releases Paycheck Protection Program Loan Forgiveness Application

Written on May 19, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz On Friday May 15th, the Small Business Administration released the long-awaited Paycheck Protection Program (“PPP”) loan forgiveness application. The forgiveness application includes detailed instructions for borrowers to calculate their eligible costs and determine the amount of PPP loan forgiveness. The form provides more guidance than previously available, but still not as clear as we’d hoped. There are still unanswered questions and we anticipate additional...

SBA Clarifies Safe Harbor Status for Loans Under $2 Million

Written on May 14, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz On 5/13/2020, the SBA issued FAQ 46 which grants Safe Harbor status to all loans under $2MM. Small businesses received a welcome update today via SBA FAQ 46 which states that businesses, including their affiliates, that accepted Paycheck Protection Program loans of $2 million or less, will be assumed to have performed the required certification in good faith. The PPP application requires small business owners to certify in good faith that “current economic uncertainty...

Are You Applying For the PPP in Good Faith? How to Document Your PPP Loan Application Decision

Written on May 4, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz One important aspect of applying for a PPP loan is certifying in good faith that your loan request is necessary. The PPP application asks you whether “current economic uncertainty makes your loan request necessary to support your ongoing operations.” We have put together this list of considerations to help you assess in good faith and officially justify your need for this emergency funding. Read this today to ensure your business has made an informed decision...

Expenses Relating to PPP Forgiveness are Nondeductible

Written on May 4, 2020. Posted in Financial Planning, Tax, Tax Alerts.

By Evan Gernant On Thursday, April 30, the IRS issued Notice 2020-32 clarifying that to the extent a Paycheck Protection Program (PPP) loan is forgiven, the associated expenses will be nondeductible for federal tax purposes. The CARES Act made it clear that any amount of forgiveness of a PPP loan would be non-taxable. What was not addressed and left for interpretation was whether the associated expenses would be tax-deductible. Many were hopeful for a better ruling from the IRS...

Do You Need to Return Your PPP Loan? SBA Clarifies Eligibility Guidance Through FAQ Update

Written on May 1, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz Update: As of Wednesday, May 6, the safe-harbor deadline for returning PPP funds has been extended to May 14. Complete the application, provide supporting documentation, and you should be well on your way to a forgivable loan. All the better since you must spend the money on payroll costs in order to receive forgiveness. It is called Paycheck Protection after all, right? Not so fast according to recent updates published by the SBA. The SBA has recently issued...

The Path to PPP Loan Forgiveness: Start Preparing Right Away

Written on April 24, 2020. Posted in Financial Planning, General Business.

Update: On Friday, May 15th, the SBA released the application for Paycheck Protection Program Loan forgiveness. Please see this article, which highlights key elements and guidance to the application process. By Travis Miskowitz Paycheck Protection Program (PPP) loans are designed to be forgiven, but it doesn’t happen automatically. It’s best to get a plan in place to work toward maximum forgiveness as soon as you receive your PPP loan. The SBA is expected to issue additional guidance...

Congress Agrees to Additional Funding for Small Businesses

Written on April 21, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz This is a developing story and information contained in this article is subject to change. We will continue to provide updates as new information becomes available. Congress has agreed upon a Bi-Partisan deal to provide an additional $484 billion in funding for small businesses, hospitals, and coronavirus testing. The Senate and House are expected to quickly approve the bill with the backing of the White House. The bill is expected to be signed into law as early...

SBA Curtails Acceptance of EIDL Applications

Written on April 16, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz The SBA just announced they are unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. Due to incredibly high demand, the SBA had recently amended some key benefits of the EIDL Loan program. With millions...

Updated PPP Guidance: Self-Employed Business Owners and Partnerships

Written on April 16, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz Paycheck Protection Program Updates – April 14, 2020 NOTE: As of April 16, 2020 the SBA is advising applicants that funds for the PPP loan program have been exhausted. Congress is currently negotiating and working to infuse an additional $250 billion into the program. This guidance is applicable when the SBA begins accepting applications again. We will continue to provide updates as more information becomes available. On April 14, 2020 the U.S. Small business...

Documenting Expenses to Support PPP Loan Forgiveness

Written on April 7, 2020. Posted in Advisory Services, Financial Planning, General Business.

By Travis Miskowitz The Paycheck Protection Program allows loans of up to $10 million at 1% interest to employers with fewer than 500 workers. The purpose of the program is for employers to retain their employees; the loan amount is intended to cover two months of payroll and overhead. The government will forgive most or all of the loan if the company keeps its workers and does not cut wages. The maximum amount of the PPP loan that is eligible for forgiveness is equal to the amount...

The Economic Injury Disaster Loan vs. The Paycheck Protection Program

Written on March 30, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz On March 27th, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a stimulus bill that includes a loan program to keep small businesses afloat during mandated COVID-19-related closures. The CARES Act includes a Paycheck Protection Program (PPP) which authorizes up to $349 billion of federally guaranteed loans to qualifying small businesses. This new loan program is based on the architecture of the SBA’s existing...

Tag: PPP

PPP Loans Become More Favorable for Small Business, Other Important Updates

Biden Administration Targeting PPP Aid to Smallest Businesses – 2 Week Delay Starting Wednesday Morning

SBA to Speed Up PPP Approval Process

PPP Processing Delays – More Communication Required from SBA

Straight Outta Congress: How to Maximize the Employee Retention Credit (ERC) & Paycheck Protection Program (PPP)

PPP “Yeah, You Know Me” – 3rd PPP Application Window Opening Soon

Breaking Down the Employee Retention Credit in the New COVID Relief Bill

Show me the money…again! Congress agrees to $900B Emergency Coronavirus Relief Act of 2020

Unintended Effect of PPP Loan Forgiveness: Reduction in R&D Credit

Treasury and IRS Issue Guidance on Deductibility of Expenses Related to a PPP Loan

SBA Releases Long-Awaited Loan Forgiveness FAQs

PPP Flexibility Act Passes Senate, significantly decreases barrier to loan forgiveness

Latest PPP Loan Forgiveness Guidance Released: Fails to Address Two Key Requirements

PPP Loan Forgiveness Application – Overview of Required Documentation

SBA Releases Paycheck Protection Program Loan Forgiveness Application

SBA Clarifies Safe Harbor Status for Loans Under $2 Million

Are You Applying For the PPP in Good Faith? How to Document Your PPP Loan Application Decision

Expenses Relating to PPP Forgiveness are Nondeductible

Do You Need to Return Your PPP Loan? SBA Clarifies Eligibility Guidance Through FAQ Update

The Path to PPP Loan Forgiveness: Start Preparing Right Away

Congress Agrees to Additional Funding for Small Businesses

SBA Curtails Acceptance of EIDL Applications

Updated PPP Guidance: Self-Employed Business Owners and Partnerships

Documenting Expenses to Support PPP Loan Forgiveness

The Economic Injury Disaster Loan vs. The Paycheck Protection Program

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