Knowledge and Insights
The Senate passed a bill to extend the filing deadline for Paycheck Protection Program (PPP) loans late on June 30th, just hours before the Small Business Administration (SBA) was set to stop accepting applications. However, unless and until the House of Representatives approves the language, the SBA will stop accepting PPP applications. The PPP provides small businesses with potentially forgivable loans of up to 10 weeks’ worth of payroll to use mainly on paying workers along with some other fixed costs. If PPP borrowers follow the program’s guidelines, their loans can be potentially forgiven. Funds used for other purposes become low interest loans with five-year terms.
Small Business Chairman Marco Rubio, an architect of the PPP, stated he wants to repurpose the unclaimed funds to help the hardest hit small businesses. That idea, which Treasury Secretary Mnuchin endorsed, would allow businesses that demonstrate large reductions in revenue to apply for additional forgivable loans wherein the portions not used for payroll would be converted into long-term, low-interest loans.
Mercadien’s COVID-19 Task Force can help you prepare the required loan calculations, compile the necessary documentation, complete and submit the forgiveness application and answer your questions about the PPP, PPPFA and other relief options. We’re also available to assist you in evaluating your budget and cash flow needs, working as an advisor and sounding board to help you manage your way through the upcoming months. Complete the COVID-19 Assistance Request form on our website or contact Frank Pina, CPA at 609-689-2319 or firstname.lastname@example.org to get started.
DISCLAIMER: This advisory resource is for general information purposes only. It does not constitute business or tax advice, and may not be used and relied upon as a substitute for business or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified accountant, tax practitioner or attorney licensed to practice in the jurisdiction where that advice is sought.