On March 27, The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed and signed into law to provide economic relief to businesses and individuals impacted by COVID-19. It includes several significant changes to tax law, below is a summary of key provisions that impact businesses. 1. Modifications for Net Operating Losses A net…
Four Events can trigger a reduction in loan forgiveness: Reduction Based on Use of Funds Reduction Based on Employee Headcount Reduction Based on Employee Payroll Reduction Based on Advance Payment #1 Reduction Based on Use of Funds At least 75% of the loan proceeds must be used on payroll costs. Borrowers may only spend only…
Millions of U.S. businesses impacted by COVID-19 have obtained funding from the Small Business Administration (SBA) loan programs that were funded and expanded by Coronavirus Aid, Relief, and Economic Security (CARES) Act. Many jumped at the opportunity to get forgivable Paycheck Protection Program loans and grants from the Economic Injury Disaster Loan Program. Due to…
Small business owners who have received the Paycheck Protection Loan can seek forgiveness of the PPP loan’s principal amount if it is spent on SBA authorized uses during the 8-week covered period. Here’s what you need to know to qualify for loan forgiveness In order to maximize loan forgiveness small business owners must: review what…