Covered rent obligations for business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 per SBA guidelines. There is no guidance regarding lease renegotiation. It is recommended to work with your lender to see if they will provide additional clarification.

Currently borrows cannot request an increase in their PPP loan amount. Legislation has been introduced in congress that would allow borrowers with less than 100 employees and a decrease in revenue of 50% or more, as result of COVID-19, request additional funds.

On June 16 and 17, 2020 the SBA issued a modified loan application. an EZ loan application and revisions to the third and sixth interim final rules. This new guidance caps individual employee wages at $15,385 for an 8-week covered and $46,124 for a 24-weeks covered period. Both of these amount represent an annualized $100,000 salary prorated for the respective covered periods.

Contractors (1099’s) or temporary employee’s paid through an agency are not eligible costs for loan forgiveness. The SBA clarified this in the Interim Final Rule. If you pay your temp to hire employees through an agency, these amounts would be not be forgiven and would be included in your PPP loan amount.

Please contact our office. We work with several CPA firms in the Central Texas area that can be of assistance. Costs and levels of engagement will vary depending on details of the loan and Borrower’s situation. Note that we are NOT aware that an audit of the PPP loan and loan forgiveness is a requirement under the rules of the program.

Please contact our office so that we can discuss with you further the nature of your business activities. The PPP and its loan forgiveness program may vary depending on how that nature of the entity (a C or S corporation as compared to a LLC that may be treated for tax purposes as a partnership.)

These costs would be eligible for loan forgiveness since if they were paid during the covered period. Nonpayroll costs eligible for loan forgiveness must be PAID during the covered period or INCURRED during the covered period and paid on or before the next regular billing date, even is the billing date is after the covered period.

These costs would not be eligible for loan forgiveness since they were incurred after the covered period. Payroll costs eligible for loan forgiveness must be paid during the covered period and/or incurred during the covered period and paid on or before the next regular billing date, even is the billing date is after the covered period. Nonpayroll costs eligible for loan forgiveness must be paid during the covered period or incurred during the covered period and paid on or before the next regular billing date, even is the billing date is after the covered period.

Yes, payroll costs eligible for loan forgiveness must be paid during the covered period and/or incurred during the covered period and paid on or before the next regular billing date, even is the billing date is after the covered period.

We have not seen any guidance indicting increases to salaries are expressly disallowed. The borrower has certified the necessity of the loan for the business to continue. Borrower needs to consider if loan is audited and have justification for expenditure. Why was the increase given? Work performance? Loan forgiveness related?

Genrally, the PROCEEDS from the PPP loan may be used to pay interest on mortgages and other debt obligations that in each case were incurred prior to Feb. 15, 2020. Note that interest payments are EXCLUDED from the definitions of loan forgiveness. This often has the effect of ‘refinancing’ the interest payments made during the covered loan period. We are not aware of further guidance from the SBA on further definitions of qualified interest. Note as well that as part of the CARES Act that existing borrowers under SBA loan programs may be eligible to have their existing principal and interest obligations paid directly by the SBA for a period of six months. These additional payments are not part of the PPP but would represent an additional benefit to existing SBA loan borrowers where applicable.

Per the Interim Final Rule on Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule posted on 06.22.20, health insurance benefits for owners may not be covered. There are caps on the amount of loan forgiveness available for owner-employees and self-employed individuals’ own payroll compensation. C-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer retirement and health insurance contributions made on their behalf. S-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer retirement contributions made on their behalf, but employer health insurance contributions made on their behalf cannot be separately added because those payments are already included in their employee cash compensation. How your company files taxes with the IRS will determine your loan forgiveness edibility.

Covered utility payments are business payments for a service for the distribution of electricity, gas, water, telephone, transportation, or internet access. We believe company mobile phones is considered a telephone expense.

If you have excess funds, that amount will become a loan and can be paid back at any time with no pre-payment penalty. For loans made before June 5, 2020, the maturity is two years; however, borrowers and lenders may mutually agree to extend the maturity of such loans to five years. For loans made on or after June 5, the maturity is five years.

On June 16 and 17, 2020 the SBA issued a modified loan application. an EZ loan application and revisions to the third and sixth interim final rules. This new guidance caps individual employee wages at $15,385 for an 8-week covered and $46,124 for a 24-weeks covered period. Both of these amount represent an annualized $100,000 salary prorated for the respective covered periods. Funds do not need to be pulled from different accounts,

Payroll costs consist of compensation to employees which includes allowance for separation or dismissal. This constitute a supplement to salary or wages and are thus a similar form of compensation and should be included in the total amount of cash compensation eligible forgiveness which may not exceed an annual salary of $100,000, as prorated for the Covered Period.

Per the Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 states: Federal employment taxes imposed or withheld, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, is expressly excluded from payroll costs.

No, these costs are not covered under the loan forgiveness.

Yes, Interim Final Rule on Loan Forgiveness published 05/22/20 states commissions are included in “payroll costs”. They constitute a supplement to salary or wages and are thus a similar form of compensation. The borrower must complete the Salary/Hour Wage Reduction worksheet only for employees whose salaries or hourly wages were reduced by more than 25% during the elected Covered Period.

Yes, Interim Final Rule on Loan Forgiveness published 05/22/20 states bonus and commissions are included in “payroll costs”. They constitute a supplement to salary or wages and are thus a similar form of compensation.

This employee will not be eliminated from loan forgiveness, for each individual employee, On June 16 and 17, 2020 the SBA issued a modified loan application. an EZ loan application and revisions to the third and sixth interim final rules. This new guidance caps individual employee wages at $15,385 for an 8-week covered and $46,124 for a 24-weeks covered period. Both of these amount represent an annualized $100,000 salary prorated for the respective covered periods.

Per the Interim Final Rule on Revisions to First Interim Final Rule posted on June 11, 2020 states: To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to nonpayroll costs.

Per the Interim Final Rule on Revisions to First Interim Final Rule posted on June 11, 2020 states: To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to nonpayroll costs.

Yes, Interim Final Rule on Loan Forgiveness published 05/22/20 states commissions are included in “payroll costs”. They constitute a supplement to salary or wages and are thus a similar form of compensation. The borrower must complete the Salary/Hour Wage Reduction worksheet only for employees whose salaries or hourly wages were reduced by more than 25% during the elected Covered Period.

Per the PPP Flexibility Act of 2020 and the Revised Interim Final Rule issued by the US Treasury, borrowers have 10 months to complete and submit the forgiveness application to the lender, also, per the Revisions to Loan Forgiveness Interim Final Rule issued on June 22, 2020, a borrower may submit an application for forgiveness any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness. Note that if the borrower applies for forgiveness before the end of the covered period and has reduced any employee’s salaries or wages in excess of 25 percent, the borrower must account for the excess salary reduction for the full 8-week or 24-week covered period. Also, please note Per the Revised Interim Final Rule the covered period is now 24-weeks;however, borrowers with loan approved prior to June 5, 2020 can elect to keep the 8-week covered period. Based on this language 24-weeks is the default covered period and borrowers have to make an election to keep their 8-week period.

We have not seen any guidance indicting raises are expressly disallowed. The borrower has certified the necessity of the loan for the business to continue. Borrower needs to consider if loan is audited and have justification for expenditure. Why was the raise given? Work performance? Loan forgiveness related?

There is no specific clarity on this. At this point, it appears unlikely that it will be forgivable.

Per the instructions to the modified loan forgiveness application issued by the SBA on June 16, 2020 FTE’s have to be restored not later than December 31, 2020 to the level in the pay period that included February 15, 2020. Note that in order to be eligible for the safe harbor the reductions had to occur between February 15, 2020 and April 26, 2020.