Category: Federal Page 2 of 8

PPP – New FAQs added; Appeal Process IFR released.

The Small Business Administration updated their Paycheck Protection Program and Forgiveness related FAQ documents on August 11, 2020.  They also published an interim final rule (IFR) related to the appeal certain SBA loan review decisions.  We are reviewing the new IFR and will provide an overview of the content soon.

 The forgiveness FAQ responses provide long clarity regarding the impact on forgiveness of Economic Injury Disaster Loan (EIDL) grant advances.

Per the updated FAQ, lenders will be able to confirm the amount of a borrower’s EIDL advance on the SBA Forgiveness platform and the SBA will automatically deduct the amount from the forgiveness amount submitted by the borrower. Read More

US Department of Commerce invests $35.5 million in CARES Act Funding to capitalize revolving loan funds to support small businesses across PA

The Economic Development Administration announced the awarding of $35.5 million in CARES Act Recovery Assistance grants to capitalize and administer Revolving Loan Funds that will provide gap financing to small businesses and entrepreneurs adversely impacted by the COVID-19 pandemic.

Award funds must be disbursed and lent or used for administrative costs (as permitted by the authorized budget) within 24 months of the award start date. At the end of this period, EDA may recoup any unspent funds, which will be added to the funds available for new CARES Act awards.

The full announcement can be read HERE.

The EDA investments announced 8/3/2020 are:

  • Regional Development Funding Corporation, Pittsburgh, Pennsylvania, will receive a $7.6 million EDA CARES Act Recovery Assistance grant to capitalize and administer a RLF to provide loans to coronavirus impacted small businesses in Allegheny County.
Read More

NEW FAQs released to address PPP Forgiveness questions

The U.S. Small Business Administration (SBA), in consultation with Treasury, released guidance Tuesday August 4, 2020 on a new Forgiveness focused FAQ document.  Over four sections, 23 frequently asked questions are addressed.

The four sections are outlined below with key highlights.  You can review the document in full HERE.

General Loan Forgiveness

There are 3 questions in this section.  The SBA clarifies that the 3508EZ or lender equivalent form should be used for sole proprietors, independent contractors, or self-employed individuals with no employees.  It also confirms that no payments are required from borrowers if their loans are fully forgiven and an application is filed timely.Read More

RMD Rollover Deadline

It seems that summer is flying by, even in uncertain times. You can count on only a few things in life and taxes is one of them. We are fast approaching the deadline to rollover any RMDs that were taken in 2020. Below is a brief explanation of what a RMD is and how the CARES Act plays into your RMD for 2020. If you are in a position where you currently do not need the money from your IRA or 401(k), the RMD Waiver, under the CARES Act, can give you an advantage in tax planning for 2020.

IRA and 401(k) plan owners are required to take a certain amount of money out of their accounts each year beginning in the year they turn 72 (or you are taking them from age 70 ½ before the new rules).… Read More

Senate passes extension of Paycheck Protection Program until August 8, bill heads to House & other PPP legislation

The Paycheck Protection Program (PPP), a provision in the CARES Act, provides forgivable loans for businesses impacted by the devastating financial impact of the epidemic.  Yesterday, on the statutory deadline for submission of PPP applications, the Senate voted unanimously to extend the program until August 8, 2020.  The bill, S4116 was sponsored by Senator Benjamin Cardin will now head to a vote in U.S House of Representatives.

 The Small Business Administration will stop accepting applications to the program unless / until the House passes passes the Senate version of the bill.

Other recent legislative action in Congress that could potentially impact the PPP loan program are below:

  • S.4117 – A bill to provide automatic forgiveness for paycheck protection program loans under $150,000, and for other purposes.

Read More

PPP Clarifications – borrowers may apply before the end of covered period and other information released in recent interim final rule

The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or) was signed into law March 27, 2020 to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic.  The Paycheck Protection Program, a provision in the CARES Act, provides forgivable loans for businesses impacted by the devastating financial impact of the epidemic.

The Paycheck Protection Program Flexibility Act of 2020 (PPPFA) was signed into law on June 5th to expand borrower flexibility and simplify the process to request forgiveness as a result of feedback from lenders and borrowers reporting that the rigidity and uncertainty of the program, as implemented, rendered the loan program an ineffective source of relief.Read More

EIDL Program Reopens for Eligible Small Business Companies – expands access for gig workers

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27th and intended to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic.  One provision of the CARES Act intended to deliver relief to small businesses included an expansion of the SBA’s existing 7(b) emergency loan program (Economic Injury Disaster Loans or EIDLs) to help eligible businesses and private nonprofits pay payroll and operating expenses that could have been paid had the COVID-19 public health emergency not occurred.

The program exhausted funding and the application portal closed on April 15, 2020 (reopened in May for agricultural businesses only). Read More

IRS issues Guidance on Waiver of 2020 Required Minimum Distributions

Generally, IRA and 401K plan owners are required to take a certain amount of money out of their accounts each year beginning in the year they turn 72.  These mandatory distributions are called required minimum distributions (RMDs).  The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27th and intended to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic.

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined contribution retirement plan, including a 401(k) plan, 403(b) plan, or an IRA, to skip those RMDs this year.Read More

SBA / Treasury release Interim Final Rule to address revisions to the program as a result of PPPFA; 60% is not a cliff!

The  Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was enacted on March 27, 2020 to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 pandemic.

One of the provisions of the CARES Act included a loan program authorizing the Small Business Administration to temporarily guarantee loans under a new 7(a)
loan program titled the Paycheck Protection Program (PPP).   Loans guaranteed under the Paycheck Protection Program (PPP) are  100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. 

The forgiveness component is what attracted massive interest in the program as business owners across the country are faced with government shut down orders that have caused significant declines in economic activity.Read More

Federal Reserve expands Main Street Lending Program to include more small and medium-sized businesses

The Federal Reserve Board (the Board) announced changes to the Main Street Lending Program on June 8th that are designed to expand the program to more small and medium-sized businesses.  The Main Street Lending Program was established and funded with the passing of the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.  The CARES Act was signed into law by President Trump on March 27th, 2020.

The changes were listed on a press release that the Federal Reserve’s MSLP homepage that tracks program updates and changes.  The Board indicated the changes are a result of feedback received since the initial announcement of the lending program.Read More

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