2020 October newsletter, PPP Forgiveness

No Rush On Your PPP Loan Forgiveness Application

Practice owners who received the PPP loan earlier this year had 24 weeks to spend the funds on certain payroll and facility expenses to qualify for full forgiveness of that loan. For many of our clients, the 24-week Covered Period has recently ended. Did you know that you have 10 months following the end of… Continue reading No Rush On Your PPP Loan Forgiveness Application

August 2020 Newsletter, COVID-19, PPP Forgiveness

PPP Rules On The “Required Good-Faith Certification” For Loans Less Than $2M

According to the Paycheck Protection Program Loan FAQs #46 as of August 11, 2020 available at: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf: Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request? Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary… Continue reading PPP Rules On The “Required Good-Faith Certification” For Loans Less Than $2M

August 2020 Newsletter, PPP Forgiveness

PPP Forgiveness FAQS From Our Friends At TD Bank

Below is a list of "Frequently Asked Questions" put together by our friends at TD Bank to help answer some of their clients’ questions. This info should be helpful to anyone who received a PPP Loan. Loan Forgiveness Q: How do I apply for loan forgiveness? TD Bank will have a digital application process for… Continue reading PPP Forgiveness FAQS From Our Friends At TD Bank

July 2020 Newsletter, PPP Forgiveness

No Rush to Submit PPP Forgiveness Calculations to Your Lender

For many of you, the initial 8-week PPP Covered Period ended, and we’ve received a lot of inquiries about helping submit the forgiveness paperwork to their lenders. Please be patient as there is no rush. For starters, the Covered Period is now 24 weeks, so everyone is still able to spend money that counts towards… Continue reading No Rush to Submit PPP Forgiveness Calculations to Your Lender

PPP Forgiveness

PPP Update For Including Owner Benefits In The Loan Forgiveness Calculation:

The rules concerning whether retirement plan contributions and health insurance premiums paid on behalf of practice owners can be included in the PPP forgiveness calculation were revised yet again. According to the SBA on Page 4 of the information available at: https://home.treasury.gov/system/files/136/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule.pdf: S-corporation owner-employees are capped by the amount of their 2019 employee cash compensation… Continue reading PPP Update For Including Owner Benefits In The Loan Forgiveness Calculation:

PPP Forgiveness

Timing Of Non-Payroll Costs Eligible For PPP Forgiveness Calculation

According to the SBA on Page 4 of the information available at: https://home.treasury.gov/system/files/136/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule.pdf: A nonpayroll cost is eligible for forgiveness if it was: Paid during the covered period; or incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period.  Example:… Continue reading Timing Of Non-Payroll Costs Eligible For PPP Forgiveness Calculation

PPP Forgiveness

New EZ PPP Loan Forgiveness Application

In a move to make it even easier for small business owners to have 100% of their PPP loans forgiven, the SBA issued a simplified version of the PPP Loan forgiveness application as follows: Form 3508EZ: https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf Instructions to the Form 3508EZ: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf According to the instructions, you qualify to use the EZ version if… Continue reading New EZ PPP Loan Forgiveness Application

PPP Forgiveness

Potential PPP Pitfall Eliminated For Self-Employed Individuals

Until the most recent revision to the PPP loan forgiveness rules, there was a potential PPP pitfall for self-employed individuals who have no staff nor pay rent or utilities for office space.  Having 100% of their PPP loan forgiven would have been virtually impossible. Remember, small business owners calculated the amount of their PPP loan… Continue reading Potential PPP Pitfall Eliminated For Self-Employed Individuals

PPP Forgiveness

PPP Forgiveness Calculation Now Includes Up To $20,833 For Owner Comp

The revised rule allowing practice owners to include up to $20,833 of their compensation towards the PPP loan forgiveness calculation extends to S-Corp owners too. Previously, owner comp was capped at $15,385, which is a max salary of $100k divided by 52 weeks multiplied by 8 for the Covered Period. Your salary only qualifies for… Continue reading PPP Forgiveness Calculation Now Includes Up To $20,833 For Owner Comp

PPP Forgiveness

New “Check-the-Box” FTE Safe Harbor Helps Practices Maximize Forgiveness

When it comes to having the PPP Loan fully forgiven, what was keeping practice owners up at night was the requirement to re-staff to 2/15/20 levels by 6/30/20 to qualify for full forgiveness.  The revised PPP Loan Forgiveness Application available at:  https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf provides much needed relief. First, the original FTE safe harbor deadline is now… Continue reading New “Check-the-Box” FTE Safe Harbor Helps Practices Maximize Forgiveness

PPP Forgiveness

New PPP Loan Rules Reduce Payroll Cost Requirement to 60%

The Paycheck Protection Program Flexibility Act (PPPFA) signed into law on June 5, 2020 had some extremely beneficial changes for practice owners. One of the more significant changes reduces the minimum percentage of the PPP loan proceeds required to be spent on payroll costs from 75% to 60% for the practice to still qualify for… Continue reading New PPP Loan Rules Reduce Payroll Cost Requirement to 60%

PPP Forgiveness

Congress and IRS Disagree on Deductibility of Expenses Paid Using PPP Loan Funds

A battle seems to be brewing between Congress and the IRS on whether businesses can write off expenses paid with PPP funds that are forgiven. As a general rule, “forgiveness of debt” is taxable to businesses that are solvent. Even so, Congress and the IRS both agree that the amount of the PPP loans that… Continue reading Congress and IRS Disagree on Deductibility of Expenses Paid Using PPP Loan Funds

PPP Forgiveness

Very Favorable Changes Enacted For The PPP Loan Forgiveness Calculation

On Friday, President Trump signed the Paycheck Protection Program Flexibility Act (PPPFA) into law.  Let’s start with the To Do List based on the recently revised PPP rules: PPP TO DO LIST (Updated after new rules enacted on 6/5/20): If you haven’t yet applied for the PPP Loan for your practice, please do so right… Continue reading Very Favorable Changes Enacted For The PPP Loan Forgiveness Calculation

PPP Forgiveness

Review Of Recent Changes Made To PPP Loan Rules

Last week brought great news for practice owners who want to best utilize their PPP money. Here are the changes made to the PPP rules by the Paycheck Protection Program Flexibility Act (PPPFA) enacted into law the end of last week: Extends the 8-week Covered Period to 24 weeks, giving practice owners triple the time… Continue reading Review Of Recent Changes Made To PPP Loan Rules

PPP Forgiveness

Looks Like More Changes on the Way for the PPP Loan Forgiveness Calculation

Last week brought great news for practice owners who haven’t spent all their PPP money yet. On Thursday May 27th, the House of Representatives passed a bill making the following changes to the PPP forgiveness calculation: Extends the 8-week Covered Period to 24 weeks, giving small practice owners triple the time to spend their PPP… Continue reading Looks Like More Changes on the Way for the PPP Loan Forgiveness Calculation

PPP Forgiveness

FTEs Matter

Understanding how the number of Full Time Equivalents (FTEs) working at your office impacts the PPP loan forgiveness calculation is essential for anyone looking to max out the portion of this SBA loan that will ultimately be forgiven.  According to the SBA rules available at https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf, the first three steps are straightforward. Calculate the number… Continue reading FTEs Matter

PPP Forgiveness

Increase PPP Forgiveness With Health Insurance Premiums and Retirement Plan Contributions

Last week we posted information about how the PPP loan forgiveness calculation works at: https://www.schwartzaccountants.com/2020/05/ppp-forgiveness-guidelines-finally-issued. Included in that post was the following vague guidance from the SBA about how certain employee benefits factor into the forgiveness calculation. The line numbers below refer to the applicable line on the Paycheck Protection Program Loan Forgiveness Application. Line… Continue reading Increase PPP Forgiveness With Health Insurance Premiums and Retirement Plan Contributions

PPP Forgiveness

PPP Forgiveness Guidelines Finally Issued

Over the weekend, the SBA finally issued guidelines on how the loan forgiveness calculation will work.  The Paycheck Protection Program Loan Forgiveness Application is available at: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf Let’s start with the bad news.  Looks like there will not be much flexibility with the 8-week coverage period.  According to the instructions of the SBA Form 3508,… Continue reading PPP Forgiveness Guidelines Finally Issued