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Posts tagged Paycheck Protection Loan Program.
Tax Implications of PPP Loan Forgiveness

Paycheck Protection Program (PPP) loans taken out in connection with the coronavirus (COVID-19) crisis that were subsequently forgiven raise a number of tax questions. A PPP loan may be forgiven in an amount equal to the sum of: (1) payroll costs; (2) interest (but not principal) payments on covered mortgage obligations (for mortgages before February 15, 2020); (3) any payment for any covered rent obligation (for leases beginning before February 15, 2020); (4) covered utility payments (for utilities that were turned on before February 15, 2020), during the covered period.

Beyond PPP - Financing Options for the Restaurant Industry

The Small Business Administration administered Paycheck Protection Program (“PPP”), designed to incentivize small businesses to keep their workers on payroll, will stop receiving new applications on August 8, 2020. Franchisees and independent restaurant operators would be well advised to now consider financing alternatives in light of the impending PPP application deadline.

4 Tips for Pursuing Principal Forgiveness of a PPP Loan

The Paycheck Protection Program (“PPP”) has been a highly popular relief program for small businesses passed in response to the COVID-19 pandemic. The PPP allows small businesses to obtain government-backed loans from private lenders which, if spent properly on payroll, rent, utilities and/or mortgage interest, can be all or partially forgiven. Over the last month, small businesses have been hastily flocking to lenders to obtain loans from the limited pool of funding, and lenders have been diligently working to properly review, document, and fund the loan requests. Up to this point, there has been little instruction from the SBA regarding the mechanics of the loan forgiveness feature that is soon to become a critical phase at the “back end” of the program.

Paycheck Protection Loans under the CARES Act: What Do Lenders Need to Know?

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) became law in the United States. Among other things, the CARES Act provides relief to certain businesses in the form of “paycheck protection loans” through what the Act calls the Paycheck Protection Program (the “Program”). These loans are to be administered under Section 7(a) of the Small Business Act through the network of Small Business Administration (“SBA”) qualified lending institutions.