The Paycheck Protection Program Loan Forgiveness Application: Cracking the Code and Deciphering the Confusion
As noted in our previous alert , SBA recently released its long-awaited PPP Loan Forgiveness Application. Unfortunately, the Forgiveness Application is difficult to understand and complete. To help crack the code, we have put together the following analysis with our review of the application, SBA’s newly released guidance as to the loan terms, and key issues in the application, as well as input from our accounting partners. 1. Necessary Documents Before you fill out your Forgiveness Application, you will need to have . . . Read More
House Passes Legislation Modifying Existing PPP Regulations
On May 28, 2020, the U.S. House of Representatives passed the Paycheck Protection Program Flexibility Act of 2020 (the Act), new legislation meant to provide additional assistance to small businesses and loosen regulations related to the Paycheck Protection Program (PPP). Should this bill become law, it would make major adjustments to the PPP. The Act makes a few notable changes to PPP’s current loan forgiveness guidelines by: extending the period for which a PPP Loan may be obtained to December 31, 2020; increasing the length of time . . . Read More
DOD Issues New CARES Act, Section 3610 Guidance
Guidance from the Department of Defense (DOD) has finally been issued related to Section 3610 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which allowed for payments to federal contractors to keep non-working employees at the ready to return to work when required to do so. The new guidance can be found here . As we noted in a previous blog , the CARES Act allows contracting officers to pay contractors at the “minimum applicable billing rates” for any employees . . . Read More
SBA Issues Long-Awaited PPP Loan Forgiveness Application
SBA recently issued its 11-page Paycheck Protection Program Loan Forgiveness Application, linked here . The application walks borrowers through a step-by-step process to determine loan forgiveness amounts based upon the information the borrower enters. It is of note that the application does require borrowers to provide documentation to support the payroll and non-payroll costs paid using PPP Loan funds. This includes the following information to prove the funds were properly spent on covered liabilities incurred, or which became due, during the 8-week period following . . . Read More
SBA, Treasury Issue New Guidance Concerning Good-Faith Certification on the Necessity of Their Loan Request
On May 13, 2020, the Small Business Administration (“SBA”) and Treasury Department (“Treasury”) released new guidance concerning good-faith certification for Paycheck Protection Program (“PPP”) loan requests. This new guidance clarifies that businesses seeking a PPP loan of less than $2 million will have made their request in good faith unless proven otherwise. SBA and Treasury released this guidance because they believe that borrowers within this safe harbor threshold do not have as much access to other sources of funds that larger loan . . . Read More
Social Engineering Fraud: 4 Steps Every Company Needs to Take Right Now
GovCon Co., a successful government contractor, receives an email from the billing or accounting representative of a trusted vendor, subcontractor, or teaming partner asking for payment of an outstanding invoice stating, “Please note our new bank account information in your system for any current and future wire transfers.” GovCon Co. wires the money to this trusted business partner, believing it has satisfied its payment obligations. A few weeks later, the business partner calls and asks why its latest invoice has . . . Read More
SBA Implements WOSB / EDWOSB Certification Requirement and Revises Economic Disadvantage Criteria for 8(a) Eligibility, Including Treatment of Retirement Accounts
Just under one year ago, we wrote about the Small Business Administration’s (SBA) proposed rule regarding implementing a certification requirement for Women-Owned Small Businesses (WOSBs) / Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) and revised economic disadvantage criteria for 8(a) eligibility. SBA’s final rule was recently published, implementing just that. The rule will impact businesses seeking to compete for government contracts under the WOSB and 8(a) Business Development programs. WOSB / EDWOSB Certification Effective October 15, 2020, WOSB / EDWOSBs will be required to be . . . Read More
SBA Implements WOSB / EDWOSB Certification Requirement and Revises Economic Disadvantage Criteria for 8(a) Eligibility, Including Treatment of Retirement Accounts
Just under one year ago, we wrote about the Small Business Administration’s (SBA) proposed rule regarding implementing a certification requirement for Women-Owned Small Businesses (WOSBs) / Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) and revised economic disadvantage criteria for 8(a) eligibility. SBA’s final rule was recently published, implementing just that. The rule will impact businesses seeking to compete for government contracts under the WOSB and 8(a) Business Development programs. WOSB / EDWOSB Certification Effective October 15, 2020, WOSB / EDWOSBs will be required to be . . . Read More
House Introduces Legislation To Modify Existing PPP Regulations
On May 11, 2020, Congressmen Chip Roy and Dean Phillips introduced the Paycheck Protection Flexibility Act, new legislation meant to provide additional assistance to businesses impacted the coronavirus pandemic. This bill would make major adjustments to the current Paycheck Protection Program (PPP) should it become law. Some of the notable changes the bill would make to the PPP program include: clarifying that companies can spend the PPP loan funds past the initial 8-week period and still be eligible for forgiveness; . . . Read More
New Senate Bill Could Make PPP Expenses Tax Deductible
On May 6, 2020, members of the Senate Finance Committee introduced the Small Business Expenses Protection Act of 2020 (“the Act”), legislation that would allow some small businesses to deduct from their taxes expenses paid with their forgiven Paycheck Protection Program (“PPP”) loan. Should this bill become law, it would greatly modify current regulations surrounding tax-deductible expenses for small businesses. On April 30, 2020, the Internal Revenue Service (“IRS”) issued a notice stating that no tax deduction is allowed for an expense that results in PPP loan forgiveness. . . . Read More