The Small Business Administration (“SBA”) issued an update to its “Frequently Asked Questions for Lenders and Borrowers for the Paycheck Protection Program,” adding question #46 and the response, which is recited below. For PPP loans of less than $2 million, the borrower will be “deemed to have made the required certification concerning the necessity of
Paycheck Protection Program
UPDATE: Certain Uncertainties Resolved by SBA Regarding Payroll Costs of Partnerships and Sole Proprietors Applying for CARES Act Payroll Protection Program Loans
By Jaye Calhoun, Kevin Curry, Angela Adolph, Mark Miller, Phyllis Sims, Robert Schmidt & William Kolarik on
Posted in COVID-19, State and Local Taxation
On March 27, 2020, President Trump signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (Public Law No: 116-136, the “CARES Act” or the “Act”). Title I of the CARES Act creates the Paycheck Protection Program (discussed in more detail here). Generally speaking, the Paycheck Protection Program permits certain small businesses to…
Eligible Self-Employed Individuals under the CARES Act
By Brian Carnie, Blane Clark & Linda Clark on
In addition to certain entities, independent contractors, sole proprietors and “eligible self-employed individuals” may be eligible to apply for a Paycheck Protection Program loan under the CARES Act.
What is an eligible self-employed individual? It is important to note that the statute did not refer to “self-employed individuals” which would have been very easy for…
April 6, 2020 Update to CARES Act and Paycheck Protection Program
By Dean Cazenave & Blane Clark on
Posted in Business and Corporate, COVID-19
- Calendar Year 2019 Payroll as Basis for Loan Amount (General Rule). If the borrower was in business for all of 2019, the PPP loan application form suggests that the borrower must use the payroll costs for calendar year 2019 (even though this appears to conflict with the language in the CARES Act, which provided
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Uncertainties Created by Tax and Accounting Issues Raised by the Paycheck Protection Program in the Coronavirus Aid, Relief, and Economic Security Act
By Jaye Calhoun, Kevin Curry, Angela Adolph, Mark Miller, Phyllis Sims, Robert Schmidt & William Kolarik on
Posted in COVID-19, State and Local Taxation
On March 27, 2020, President Trump signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (Public Law No: 116-136, the “CARES Act” or the “Act”). Title I of the CARES Act creates the Paycheck Protection Program (discussed in more detail here). Generally speaking, the Paycheck Protection Program permits certain small businesses to…
CARES Act Offers Much Needed Hope to Small Businesses
By Dean Cazenave & Blane Clark on
Posted in Business and Corporate, COVID-19
Keenly aware of the enormous impact COVID-19 is having on small businesses throughout the country, in response, the Congress approved and on March 27, 2020, the President signed the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”). The CARES Act is intended, in part, to provide small businesses some much needed…