PPP Resources for Treasure Coast Businesses Nine Practical Steps 1. Find the The Laws • H.R. 748 = CARES Act; PPP = Sections 1101, 1102 and 1106 • 1101, 1102 = PPP definition • 1106 = Loan Forgiveness • H.R. 266 = PPP & HCE Act • H.R. 7010 = PPPFA 2. See what the agencies say 3. Google PPP FAQ… 48 as of this writing 4. Keep up with Interim Final Rules CARES Act - PPP Interim Final Rules • Google: 3245-AH34, SBA unless otherwise noted Federal 3245-AH35, 3245-AH36, RIN Register Page Effective Date 1st 3245-AH34 20811 4/15/20 2nd 3245-AH35 20817 4/15/20 etc. 3rd 3245-AH36 21747 4/20/20 4th 3245-AH37 23450 4/28/20 Treasury #1 1505-AC67 23917 4/30/20 AND 5th 3245-AH38 26321 5/4/20 6th 3245-AH39 26324 5/4/20 1505-AC67, 1505-AC69, 7th 3245-AH40 27287 5/8/20 8th 3245-AH41 29845 5/19/20 9th 3245-AH42 29842 5/19/20 etc. 10th 3245-AH43 29847 5/19/20 11th 3245-AH44 30835 5/21/20 12th 3245-AH45 31357 5/26/20 13th 3245-AH46 33004 5/28/20 Treasury #2 1505-AC69 33004 5/28/20 14th 3245-AH47 33010 5/28/20 15th 3245-AH48 pending publication 16th 3245-AH49 17th 3245-AH50 5. UH -OH… “We’re from the IRS and we’re here to help” IRS Notice 2020-32 • PPP says loan forgiveness is tax exempt, but… • Expenses paid by loan forgiveness are NON-DEDUCTIBLE. • Was this the legislative intent? • Congress chose not to address this issue in PPPFA. • BOTTOM LINE: Government might take back ~ 1/3 of forgiveness amount. 6. Be aware of unanswered questions... • EXAMPLE: Federal Register Volume 85 Page 21749 7. Look for resources from AICPA 8. Consider AICPA loan forgiveness calculator • Get the current version! 9. Look for an easier way to generate the loan forgiveness form. •ppp.bank • Created by Mark Cuban & others One more thing…PPPFA Considerations • Be Wary • PPPFA extends Covered Period to 24 Weeks BUT • PPP only provides ~ 11 weeks of funding. • The Covered Period is EITHER 8 weeks OR 24 weeks (no in-between) • If you elect the 24 week “Covered Period”, you must maintain minimum numbers of employees AND maintain a certain rate of pay for certain employees FOR ALL 24 WEEKS – even after the PPP funds run out. • SBA or Congress may modify or re-interpret this provision differently going forward..