Congress recently passed legislation to loosen some of the restrictions that came with the popular Payroll Protection Program. As of June 4, both the House and the Senate have passed these new provisions with near-unanimous approval and the president is expected to sign the bill.
The new law runs only about 1,000 words, but contains several major changes that vastly extend the terms of the program:
More guidance and clarifications are likely to come. Until then, loan recipients may want to check AICPA guidance or the bill itself.
Meanwhile, loan recipients planning to submit forms for loan forgiveness should tread carefully: It may take some time for the Small Business Administration to update its form to align with the new, more flexible terms.
The bottom line: Consult competent legal and accounting advice with any questions and before making any decisions.
Posted June 2020 – Copyright 2020
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