New Interim Final Rule Provides More PPP Loan Forgiveness Clarification

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On August 24, 2020, The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule addressing Paycheck Protection Program (PPP) forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs.

This guidance provides that owner-employees with less than 5% ownership are exempted from the PPP owner-employee compensation rule for determining the amount of their compensation for loan forgiveness. The new interim rule also covers provisions designed to maintain equitable treatment between a business owner that holds property in a separate entity and one that holds the property in the same entity as its business operations.

Additional information about these issues and calculation examples can found in this Journal of Accountancy article.

If you have questions about PPP loan forgiveness, please contact Bob Grossman, Don Johnston or Mike Weber at 412-338-9300.

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Bob Grossman

Bob Grossman

Bob, one of the firm’s founding partners, has over 40 years of experience in public accounting. He specializes in tax and valuation issues that affect businesses as well as their stakeholders and owners. Bob has extensive experience working with the Internal Revenue Services and also serves as an expert witness in litigation matters.

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