News & Events

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:

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.”

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.

As a follow-up to our PPP Loan Forgiveness: Calculator and FAQs post, below is more information from the SBA on re-hiring employees.

The SBA recently issued favorable guidance addressing problems small-business owners have faced in bringing back workers. The guidance, issued last week, states that if a small business makes a written offer to re-hire a worker and that worker chooses not to accept, then the employee will not be counted against the small business for purposes of the FTE forgiveness-reduction rule.

The Paycheck Protection Program, a first-come, first-served fund of $349 billion approved by Congress and signed by President Donald Trump in March, was designed to assuage some of the financial burden for the nation’s small business owners. Due to high demand, the program reached capacity quickly and the Small Business Administration announced today that it is unable to accept new applications. It is unclear at this time whether Congress will authorize additional funding.

As a small business owner, you have to wear many hats, or work a variety of different positions, in order to run and operate your business efficiently. Being a small business owner is a lot of work and requires a lot of your time. Here are just some of the many hats that a typical small business owner has to wear when they are working to get their business off of the ground. 

The holiday months are coming up very soon. While the rest of the world is preparing to celebrate, your business needs to prepare for the holidays in a different way. The holidays typically bring in more business, but they also herald some complications that need to be addressed sooner rather than later. Gift yourself by preparing your business for the holidays with these proactive steps: