2023 Tax Calendar
VIEWpoint Issue 2 | 2022
Inflation Reduction Act: Highlights of Key Changes for You and Yo...
Earlier this week, the White House announced several reform measures targeted at helping small businesses with fewer than 20 employees get much-needed financial relief from the remaining $150 billion in Paycheck Protection Program (PPP) funds to reopen and rebuild in the wake of the pandemic.
Here are the most notable measures small business owners should know about:
Exclusive application period: Beginning Feb. 24, 2021, applicable small businesses will have an exclusive 14-day application window in which only they can apply for relief for Paycheck Protection Program (PPP) funding. The current round of funding expires on March 31.
Revised PPP calculation: The PPP loan calculation formula will be revised for these small businesses with sole proprietors, independent contractors and self-employed owners to allow access to $1 billion in PPP funding, which they otherwise would be excluded from.
Eliminate conviction rules: To date, businesses have been ineligible for the PPP loans if at least 20% of the business was owned by a convicted felon related to financial assistance fraud in the previous five years or any other felony within the previous year. This restriction is being eliminated. Those applicants with an owner incarcerated at the time of the application will continue to not be eligible.
Remove student debt restriction: The Small Business Administration (SBA) will eliminate the restriction placed on those businesses with at least 20% ownership that is currently delinquent or defaulted on federal student loans in the last seven years to allow them to be eligible for PPP funding.
Allow non-citizens funding access: Lawful non-citizen business owners will be able to apply for the PPP loan using their individual taxpayer identification number. Additional SBA guidance is expected shortly on this.
Need assistance preparing financial information for the PPP application or understanding the tax implications of your forgiveness? Contact Doeren Mayhew’s PPP advisors today, we are here to help!
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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