COVID-19 Update May 19, 2020

We’ve been doing a ton of research into PPP Forgiveness to help provide you with appropriate guidance. We’ve included a couple of articles, each containing different talking points around the forgiveness equation. These are well-written articles and give great advice; however, there are still many unanswered questions.

One of the interesting items about the PPP Forgiveness application, itself, is that if you go to the Owners Payroll Expense part of the application (Schedule A, line 9), you’ll note that there is no place to put in health insurance benefits or retirement contribution costs for the owners.

The SBA has not specifically come out and said whether owner’s benefits are not allowed. Perhaps they just made the form so that you can’t enter these expenses. The most perplexing thing, here, is that most businesses included the expense of owner’s benefits on their PPP loan application. How is it that the application for the loan allowed business owners to include these benefits on the loan application, but these same numbers are somehow excluded on the Forgiveness Application?

Lots of items like this still need to be answered. Hopefully soon!

Today downloads:

Covid-19 is Creating Telework Converts – It looks like more and more employees are liking the taste of teleworking that they’ve had thus far.

SBA issues PPP forgiveness Guidance – An article by Somerset CPA advisors that offers some insights as to what we know today, but also acknowledges that many more updates from the SBA will be forthcoming.

SBA PPP Loan Report Round 2 – Summary statistics issued by the SBA about the distribution of PPP funds throughout the country.

PPP Loan Forgiveness Guidance – A Few New Rules: What You Need to Know Now – Another take on PPP forgiveness that was recently published by Forbes.

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Have a great week.