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Breaking PPP Update

Tony Nitti (a favorite of many tax geeks across the country) summed up the frustration of accountants all over the United States when he recently wrote:

“… I am ALWAYS wrong about PPP loans. I’ve been wrong so much, in fact, that it’s a wonder why anyone would still read anything I write about PPP loans.”

Here’s the good news.  Tony, and the rest of us, were wrong again.  We got detailed insight on a call with the AICPA yesterday on the latest bipartisan coronavirus relief package, and it looks like there’s a lot to be excited about as it relates to PPP.  We also got the framework from Senator Manchin’s office.  As with everything Washington these days, nothing is certain, but the latest bill seems to have broad support as a stepping stone to a larger bill in the new year.

Here’s what we’re hearing is in the bill.  We’re hoping to see a draft of the bill on Tuesday for more specifics:

  • Total relief $908 billion
  • $288 billion for PPP round 2 (or 2.5?)
    • 25% to 35% reduction in revenue required
    • Must have less than 300 employees
  • Full deductibility of eligible costs paid with PPP funds
  • Simplified forgiveness of loans of less than $150,000
  • Timing – as soon as December 9th to 11th
    • Could go as late as December 18th
    • SBA prepared to move quickly upon passage

So there you have it.  These are very important measures that we’ve all be hoping for.

How can we help?

  • Need someone to review your application for forgiveness before submitting to the bank?  We’re here for that.
  • Have questions on the PPP rules?  Salary/wage reduction and FTE tests?  Let us know.
  • Need some help running the numbers to see if you may be eligible for the next round of PPP?  We can help with that too.
  • Want to vent about your frustrations with the process?  I’m not sure we’ll be of much help, but we’re always here to listen!

Feel free to contact Mark Heath, Partner & Director of Tax Services here at McKonly & Asbury at mheath@macpas.com.

Questions on submitting your PPP loan application or the forgiveness process?

Our team stands ready to assist you through the PPP loan application and forgiveness process. Do not go at it alone. Ensure you are submitting the right information and receiving the highest forgiveness amount possible. Visit our PPP Loan Consulting webpage by clicking here to request assistance or support.

About the Author

Mark Heath

Mark is a Partner with McKonly & Asbury. Serving as Director of Tax Services, he brings a wealth of experience in federal, state, and international income as well as franchise tax issues for both publicly and privately held corporatio… Read more

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