How The Paycheck Protection Plan Is Impacting Businesses One Year Later

For companies in many industries, staying in business throughout 2020 was a struggle. It meant constantly adapting to new challenges, working harder than ever to just stay afloat and strategically taking advantage of state and federal relief efforts, like the Paycheck Protection Program (PPP), wherever possible.

As a small business, we felt those struggles ourselves, and even as life starts to go back to ‘normal,’ we understand that the financial concerns of the last year are not going to just magically disappear.

Depending on what relief was utilized, many business owners are now considering their best strategy for repayment. In this blog, we’ll discuss your options and help you decide what’s best for your company.

A Recap On The PPP

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Treasury Guidance On Payment Protection Loans

This week we have new Treasury Guidance on the PPP loan forgiveness requirements. This guidance seems to be primarily aimed at the issue of the “necessity” of the loan, which continues to be somewhat murky. We also have updates on business expense reimbursement, which is an issue that has become more important with employees working from home and changing the pattern of their business expenditures.

New PPP Guidance

The Treasury has updated its guidance related to the CARES Act Paycheck Protection Program (PPP) loan forgiveness requirements. The Treasury now notes that most companies with adequate sources of alternative liquidity are likely not eligible for the program. In order to qualify for the loans, PPP borrowers are now required to provide a good faith certification stating that current economic conditions and uncertainty make the loan necessary to support ongoing operations. PPP borrowers who find they cannot make the certification in good faith are permitted to return the funds. For more information on the PPP loan rules, visit Tax Facts Online. Read More