On Saturday, July 4, 2020, President Trump signed into law a bill to extend the Paycheck Protection Program another 5 weeks. There is approximately $130 billion in loan money still available to small businesses through this program.
Here is a collection of articles we've found that best explain the details of this extension:
The Small Business Administration released a three-page "EZ" Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. The form applies to borrowers who meet any one of these three criteria:
Some Texans are receiving fewer surprise medical bills this year thanks to a new law that prevents the health care industry practice known as balance billing.
SB1264, which passed the Texas House of Representatives with a unanimous 146-0 vote and went into effect on Jan. 1, 2020, forces health care providers and insurance companies to work out emergency care bills in an arbitration process without sending consumers surprise medical bills.
President Trump signed into law the Paycheck Protection Flexibility Act which restructures how employers can use loans issued through the Paycheck Protection Program (PPP).
Businesses started reopening this month in Texas, but with a vaccine for COVID-19 still on the horizon, it will not be “business as usual” for the foreseeable future.
Texas Gov. Greg Abbott in announcing another phase of business reopening’s on May 18 said: “Our focus is to keep you safe, while also restoring your ability to get back to work, to open your businesses, to pay your bills, to put food on your tables.”
For most Texas businesses there is nothing like that first day that you throw open your doors to the world. A fast start for your new business generates momentum and begins building customer loyalty.
In these trying times of the COVID-19 pandemic many Lone Star State businesses are faced with the task of reopening after a partial or full shutdown, and that “reopening day” may be as important as the first day they opened.
141,672 additional Texans filed for unemployment for the week ending May 9 bringing the total number of Lone Star state residents seeking relief benefits since the coronavirus pandemic began two months ago to a whopping 1.9 million people.
Forbes posted an excellent article that delved deeper into the PPP loan and the parameters that must be met in order to be "forgiven" by a lender. The article provides a breakdown of the application and a deeper understanding of what the PPP can really be used for; good information to know for those that have already received their funds as well as for those that are just applying.
The article highlights several challenges, including
The application confirms (with one small exception) that only those expenses paid within the 8-week period after receiving the loan are eligible for forgiveness. Many borrowers, however, are already half-way through that 8-week period, meaning even if this most recent guidance were complete – and it is far from it – it would still be entirely too late.
As of May 6, more than 2.4 million loans worth more than $183 billion have been approved as part of the second round of funding for the Paycheck Protection Program (PPP). Whether you have already received funding following your application for the PPP, or are still waiting to hear back regarding approval for a loan, you may have questions about loan forgiveness. Below are responses to frequently asked questions on this issue.
We are also including a link to download a helpful PPP Loan Forgiveness Estimator Tool to help you better understand what part of your PPP loan may be forgiven. Just enter your loan information into the boxes beginning with cell B29 of the spreadsheet to get started.
As a follow-up to our PPP Loan Forgiveness: Calculator and FAQs post, below is more information on a tax pitfall small businesses who received the PPP may encounter.
A recent IRS Notice will have the effect of a tax on small businesses that have their PPP loan forgiven. The CARES Act itself states that a forgiven PPP loan will not be considered taxable income to the small business. In essence, when you are forgiven debt by a bank or other party, the lender will typically issue the borrower a 1099-C for the amount forgiven, and the business or its owner will end up having to include that 1099 on their tax return and will have to pay tax on the amount forgiven as if it was income. Congress didn’t want this outcome, and as a result the CARES Act clearly states that forgiven loan amounts will not be considered forgiveness of debt income.
