In their third announcement in less than a week, the Small Business Administration (SBA) has released an interim final ruling that will affect forgiveness and review procedures for Paycheck Protection Program (PPP) Loans of $50,000 or less. This will have a wide-ranging impact on borrowers because 68.6% of all PPP Loans fall into this category.
Borrowers who received less than $50,000 in PPP funds (other than any borrower that together with its affiliates received loans totaling $2 million or greater) are now eligible to use a new form to apply for forgiveness. This form allows for an exemption from any forgiveness reductions due to full-time equivalent (FTE) employee reductions or reductions in employee salary or wages.
Over the last few days, the SBA also released guidance addressing changes in ownership and clarified the deferral period. To read more about these announcements, click here.
DGC has a proven process that utilizes our sophisticated model and incorporates our data analytics experience and accounting expertise to maximize PPP Loan forgiveness. If you have questions, please contact a member of your DGC client service team or George Shaw, CPA at 781-937-5125 / email@example.com and Kimberley Train, CPA, ABV at 781-937-5112 / firstname.lastname@example.org. You can also visit DGC's coronavirus web page at dgccpa.com/coronavirus which is frequently updated with new resources to help you deal with the financial impact of the coronavirus on you and your business.
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