The COVID-19 Relief Bill: What Business Owners Need to Know Heading into 2021

By WealthCounsel Staff on Jan 8, 2021 10:15:40 AM

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On December 27, 2020, President Trump signed into law H.R. 133, the Consolidated Appropriations Act, 2021 (the Act). Included among the Act’s nearly 5,600 pages are provisions related to COVID-19 pandemic relief. Key tax provisions include: (1) Paycheck Protection Program (PPP) updates, including the allowance of deductions for qualified expenses paid for with PPP loan proceeds that are subsequently forgiven, the extension of the program, the introduction of “second draw” PPP loans, and the expansion of eligible expenses for which PPP loan proceeds can be spent; (2) the extension of paid sick and family leave and family credits for wages paid through March 31, 2021; and (3) the extension of the employee retention credit under the Coronavirus Aid, Relief, and Economic Security (CARES) Act through June 30, 2021.

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SBA Provides Simplified PPP Forgiveness Application and Relief to Borrowers of $50,000 or Less

By WealthCounsel Staff on Oct 28, 2020 4:02:05 PM

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On October 8, 2020, the Small Business Administration (SBA) and the Department of the Treasury (Treasury) issued a new simplified two-page Form 3508S application, instructions for borrowers, and accompanying guidance aimed at benefiting small business owners who obtained Paycheck Protection Program (PPP) loans of $50,000 or less. Borrowers and their affiliates that received loans of $2 million or more may not use Form 3508S. The new application and guidance, effective October 14, 2020, provide much-anticipated relief for eligible borrowers, including forgiveness reduction exemptions and fewer reporting requirements. The Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, legislation proposed by the Senate in July, would have provided automatic forgiveness (upon attestation of a good faith effort to comply with PPP requirements) to borrowers receiving $150,000 or less in PPP funds.

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