PPP Loan Update: Loan Forgiveness Flexibility Provisions and Clarifications

Last evening, Wednesday June 3, 2020, the Senate passed the Paycheck Protection Program Flexibility Act of 2020. The significant provisions of the bill, which was previously introduced by the House of Representatives, and is expected to be signed by the President, are the following: Borrowers can choose to extend the eight-week “covered period” to 24 weeks, or they can keep the original eight-week period. This provides additional time to spend funds on potentially forgivable expenses. The payroll expenditure portion drops from 75% to 60%, meaning 40%, rather than 25%, of expenditures may be used for rent, mortgage interest and utilities and ...

PPP Loan Update – Loan Request Certification Safe Harbor Announcement

Good evening, In recent weeks, as revelations surfaced about big businesses receiving loans under the Payroll Protection Program (PPP), the Treasury Secretary announced that the SBA would be conducting reviews of all large borrowers (in excess of $2 million) and selected smaller borrowers. The SBA issued further guidance requiring all borrowers to assess their economic need for the PPP loan and, in particular, the required certification that was made on the PPP loan application which stated “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” The guidance went on to say that borrowers must make ...

Mississippi Tax-Filing Deadline Extended to July 15th

Good afternoon, The Mississippi Department of Revenue has extended the due date for filing 2019 income tax returns and making first and second quarter 2020 estimated tax payments to July 15, 2020. This extension applies to Individual Income Tax Returns, Corporate Income and Franchise Tax Returns, and Fiduciary Income Tax Returns. Previously, the Mississippi Department of Revenue had only extended the deadline to May 15, 2020. This July 15, 2020 extended filing deadline is consistent with the Federal filing extension period and that of most states, including Alabama. Should you have any questions or concerns, please do let us know. We wish ...

PPP Loan Update – Second Round of Funding

The House of Representatives is scheduled to vote today, April 23rd, on a $484 billion interim coronavirus relief package. This Paycheck Protection Program and Health Care Enhancement Act, once approved by the House, is expected to be signed by the President. Included in the provisions are the following: $310 billion to replenish the Payroll Protection Program $75 billion for hospitals $25 billion for disease testing $60 billion in disaster aid Due to the high demand for the Payroll Protection Program loans, it is anticipated that the funds will be depleted quickly. If you have not yet submitted your loan application to your financial institution, ...

PPP Loan Update – Loan Applications Self-Employed Individuals (Independent Contractors or Sole Proprietors)

Good afternoon, Please see below for much-awaited guidance released late yesterday regarding loan applications for Self-Employed Individuals: Eligibility for PPP Loan You were in operation on February 15, 2020 Your principal place of business is the United States You filed, or will file, a 2019 Form 1040 Schedule C Self-Employed Partners in a Partnership or LLC Include as payroll cost (up to $100,000 annualized) on an application filed by the partnership or LLC Not permitted to submit a separate application as a self-employed individual Maximum Loan Amount if No Employees Net profit from 2019 Form 1040 Schedule C Line 31 ...