COVID Loans and Funding
Accounting Considerations When Establishing an Emergency Relief Fund
Charter Schools across the country have stepped up to assist families during this unprecedented time. In addition to successfully adapting to entirely remote learning and providing tools such as laptops and other technology, many Charter Schools provide curbside pickup meals to their students. As this worldwide pandemic continues, many Charter Schools have established Emergency Relief […]
PPP Safe Harbor Extended to May 18
AAFCPAs would like to make clients aware that in their most recent Paycheck Protection Program (PPP) Loan Frequently Asked Questions (FAQs), the Treasury and the Small Business Administration (SBA) announced an additional extension of the “safe harbor” deadline for recipients of PPP loans. PPP loan borrowers are now allowed to return the money to the […]
SBA FAQ Indicates Good Faith Assumed for PPP Loans Under $2M
In a dramatic turn of events the Small Business Administration (SBA) released Paycheck Protection Program (PPP) Loans FAQ #46 today, May 13th regarding how the organization will review borrowers’ required good-fair certification concerning the necessity of their loan request. Loans Under $2 Million The FAQ reads “Any borrower that, together with its affiliates, received PPP […]
SBA, Treasury Extend Safe Harbor to Return PPP Funds, and New Guidelines for International Businesses
Updated May 14, 2020 AAFCPAs would like to make clients aware that in their recent Frequently Asked Questions for Lenders and Borrowers, the Treasury and the Small Business Administration announced an additional extension of the “safe harbor” deadline for recipients of Paycheck Protection Provision (PPP) loans. PPP loan borrowers are now allowed to return the […]
Questions Businesses Need to Address to Support PPP Loan Certifications
AAFCPAs has provided the following sample questions borrowers should address in a written “living document” supporting that PPP loan certifications were made in good faith. We recommend outlining responses contemporaneously in a journal format that can be appended over time as further guidance becomes available and relevant facts and circumstances evolve. Impact on Business Operations […]
IRS Issues Guidance on Deductibility of Expenses Covered by PPP Loan
AAFCPAs would like to make clients aware that on Thursday, April 30th, the IRS issued Notice 2020-32 providing tax compliance clarity related to Paycheck Protection Program (PPP) funds. Under Notice 2020-32 the IRS concludes that no deduction is allowed for an expense that results in forgiveness under section 1106(b) of the Coronavirus Aid, Relief, and […]
New SBA Guidance Requires PPP Funding Recipients to Consider Returning the Funds by May 18
Update May 14th, 2020 The initial allocation of $349 billion in Paycheck Protection Program (PPP) funds, made available on April 3rd, 2020, were disbursed to 1.6 million applicants in just 14 days. As part of the loan process, borrowers were required to make a good faith certification “that the uncertainty of the current economic conditions […]
Businesses May Defer Social Security Tax Up Until PPP Loan is Forgiven
UPDATED 6.5.2020: On June 5, 2020, the President signed into effect the Paycheck Protection Program (PPP) Flexibility Act, which would provide greater flexibility in how businesses may spend PPP loan proceeds. This includes allowing businesses participating in the PPP loan to defer social security taxes without limitation. The purpose of PPP and the payroll tax […]
Paycheck Protection Program Loans: Tracking Costs
AAFCPAs has provided the following guidance and a tracking template to ensure clients who secured a Paycheck Protection Program (PPP) loan or are currently pursuing the loan are maximizing their opportunity for debt forgiveness. Maximum Loan Value Calculation Clients are advised to assess and familiarize yourself with the calculation of the maximum loan value used […]