COVID-19 Update June 5, 2020

President Trump has signed into law HR 7010 giving employers more flexibility when using Paycheck Protection Program (PPP) funds and applying for loan forgiveness.

As of Friday, June 5, 2020, this legislation does not address tax-deductibility of expenses paid with
a forgiven PPP loan.

Here are a few more questions we hope will be answered in the coming days:

  • Can a current borrower still use the June 30, 2020 FTE Reduction safe harbor instead of December 31, 2020?
  • Does anything change with the Salary and Hourly Wage Reduction calculation and Safe Harbor?
  • Does the limit on cash compensation change to $100,000 x 24/52 from $100,000 x 8/52?

Hopefully, Congress will put pressure on the SBA to provide guidance in a timely manner.

Today downloads:

As a reminder, we are planning another webinar next Thursday at 3 pm. For the first 5-10 minutes, we will review the new PPP flexibility law and answer questions before we turn it over to our team to review other current issues.

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