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PPP UPDATE

05/4/2021

Second Draw: The Paycheck Protection Program was expanded at the end of 2020 to allow a second draw for certain businesses. 

We have spent extra time identifying those who qualify and have advised accordingly.  
•    Businesses who experienced a greater than 25% decline in receipts in any calendar quarter of 2020 compared to the same calendar quarter of 2019 qualify for a second draw. 
•    The application deadline for the second draw is May 31.  If you believe you may qualify, please notify your consultant. 

Forgiveness: We previously advised clients to wait for the forgiveness process to change, and it did.  The process has become easier for those whose loans are under $150,000.  
•    While some calculations and requirements have been eliminated, others have not. 
•    We still recommend patience.  Banks may push you to apply for forgiveness now, but that’s because they get government money once the application is accepted by the SBA.  On the other hand, if problems later arise with your application, you bear the costs, not the bank. 
•    Your application is due 10 months after the end of your 24-week period.  For context, if you got your PPP loan 4/16/2020, the forgiveness application is due by July 30, 2021.

The government’s response to the pandemic has brought special challenges to the accounting and tax community.  During this tax season, we’ve had to contend with two major tax acts, the PPP Second Draw, and the Employee Retention Credit, all in addition to the normal tax season workload.  For that reason, some work is being delayed and we appreciate your patience.  We expect the PPP Forgiveness process to resume in June.

If you have any questions or concerns, please don’t hesitate to reach out to your consultant.

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