SBA’s EIDL Advance Program Ends as Demand Exceeds Available Funds

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On July 11, 2020, the U.S. Small Business Administration (SBA) announced the conclusion of the Economic Injury Disaster Loan (EIDL) Advance program, which provided a total of $20 billion in emergency funding. According to information provided by the SBA, the funds assisted nearly six million small businesses employing 30.5 million people. Lawmakers envisioned the program, […]

PPP Application Period Extended and Loan Recipient Data Released

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The application window has been extended until August 8, 2020, for loans from the Paycheck Protection Program (PPP) created under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Following the original application deadline of June 30, 2020, the SBA summary report showed that nearly $132 billion in funding was still available. The President approved the extension […]

SBA Offers Additional PPP Loan Forgiveness Information

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A week after releasing the long-awaited Paycheck Protection Program (PPP) Loan Forgiveness Instructions and Application on May 15, 2020, the U.S. Treasury and Small Business Administration (SBA) followed up with additional guidance in the form of two new interim final rules on May 22, 2020. This new information addresses many common questions, but does not […]

Paycheck Protection Program Loan Forgiveness Application Released

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The Small Business Administration (SBA), in consultation with the U.S. Department of Treasury released their Paycheck Protection Program (PPP) loan forgiveness application on Friday, May 15, 2020. Included with the application are detailed instructions for completion of the form, which add clarification to many questions borrowers have been asking with respect to the forgiveness aspects […]

SBA’s EIDL Program Appears to Be in Deep Trouble

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Though not noted in its recent news release announcing that the application portal would reopen for certain agricultural businesses now eligible for the SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs, it has been widely reported that the program has been crushed by applications. The SBA stopped accepting new applications on April 15, […]

IRS Denial of Tax Deductions Paid from PPP Loans Draws Congressional Ire

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IRS Notice 2020-32, released last week, clarified that expenses paid with proceeds from a Paycheck Protection Program (PPP) loan will NOT be deductible in the determination of an employer’s/borrower’s taxable income for 2020. (see related post) This decision has raised the ire of many Congressional leaders who argue that the loss of these deductions was […]

Good News for NFPs about PPP Loans and Single Audit Requirements

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The CARES Act created the Paycheck Protection Program (PPP) to provide loans to assist businesses and not-for-profit (NFP) organizations through the current crisis. However, many NFPs were concerned that if they received a loan and it was forgiven, the funds would be considered a government grant and would cause them to cross the Single Audit […]

IRS Says No Double-Dipping on Expenses Related to PPP Loans

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On April 30, 2020, the IRS issued Notice 2020-32, to explain that a Paycheck Protection Program (PPP) loan recipient cannot deduct expenses that are normally deductible under the Internal Revenue Code (IRC), to the extent the expenses were reimbursed by a PPP loan that was then forgiven. The PPP was created by the CARES Act […]

FAQs Issued to Further Clarify Guidance on PPP Loans

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In the flurry of releasing millions of dollars of loan requests from small businesses under the CARES Act’s Paycheck Protection Program (PPP), the Small Business Administration (SBA), in consultation with Department of the Treasury, issued additional guidance on April 6, 2020. These Frequently Asked Questions (FAQs) go a long way in clarifying the intent of […]

Economic Injury Disaster Loans (EIDL) Under the CARES Act

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With all of the commentary and focus on the potentially-forgivable Paycheck Protection Program loans included in the Coronavirus Aid, Relief and Economic Security (CARES) Act, most companies suffering a negative financial impact from the COVID-19 pandemic are looking to participate in that program. However, a number of changes to the Small Business Administration’s  (SBA) Economic […]