Is Your Business Now Eligible To Claim A Piece Of The Paycheck Protection Program (PPP) Pie?
The Small Business Administration (SBA) continues to work through the ongoing complexities regarding the Paycheck Protection Program (PPP) and, 这样做的时候, recently released a new interim final rule pertaining to revisions to loan amount calculation and eligibility. Perhaps most notably is the fact that the new guidance makes more sole proprietors, 单一成员有限责任公司, 独立承包商 eligible for much-needed financial relief than ever before. This is excellent news after so many small businesses took a major hit from the COVID pandemic.
According to the American Institute of CPAs (AICPA), the United 状态s of America is currently home to 25 million sole proprietors. Of those business entities, as of the end of February, only 2.6 million have applied for a PPP loan. 此外, the program still has around $125 billion is still available to help small businesses in need of financial assistance. Because the SBA formally expanded program eligibility, the AICPA requested a 60-day extension to May 31.
We will see what happens with regard to the extension. 与此同时， 点击这里 to take a look at the SBA’s interim final rule. Otherwise, read on for an overview and consider whether you are now able to claim PPP relief.
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SBA’s Interim Final Rule Pertain To PPP Calculation & 资格
The SBA’s new interim rule regarding PPP impacts several important areas in the program, specifically calculations and eligibility. Here are some of the more noteworthy changes and clarifications.
工资成本
The SBA’s interim final rule adds to the current definition of “payroll costs” for owners of sole proprietors, 单一成员有限责任公司, 独立承包商. In addition to net profits on Line 31 of Schedule C, the definition of “payroll costs” now includes gross income (Line 7 of Schedule C), 不超过100美元,000. This definition is only applicable after March 3, 2021 (which is the date this guidance was released). Therefore, any loans approved prior to March 3, cannot be revised.
员工
If your eligible small business has employees, then all employee-related costs must be deducted from Line 7 (gross income) to calculate owner “compensation.” Specifically, this pertains to Lines 14, 19, and 26, on Schedule C. Employee costs removed from the owner’s gross income “compensation” calculation and are then added in separately as part of the overall payroll costs calculation.
Loan Necessity Certification
直到最近的指导, any entity applying for a PPP loan with more than $150,总收入的000元, regardless of whether it’s a first-draw loan or a second-draw loan, must provide necessity certification. 更新后的 常见问题解答, which was also issued March 3, states that any 第二个画 loans less than $2 million are now deemed to be necessary. This is because second-draw loans require borrowers to show a 25 percent decrease in quarterly receipts in at least one quarter in 2020, which effectively demonstrates necessity. For more information, review Question No. 常见问题解答中的46.
PPP贷款减免
For borrowers who used gross income as owner compensation, any proprietor expenses (up to $20,833) can be used to apply for PPP loan forgiveness. Any borrower with a NAICS code beginning with “72” can use any proprietor expenses up to $29,167.
Originally established under the Coronavirus Aid, 救援, and Economic Security Act (CARES Act), the PPP was designed to provide economic relief to small businesses throughout the country. Since it was originally enacted in early 2020, the coronavirus pandemic continued to ensue. 结果是, the PPP was extended under the Economic Aid to Hard-Hit Small Businesses, 非营利组织, and Venues Act to make PPP loans available through March 31, 2021, introduce certain revisions to PPP requirements, and permit 第二个画 PPP loans. As mentioned above, the AICPA is pushing for a 60-day extension of the March 31, 2021, deadline. 《比较靠谱的赌博软件》 & 意图公私伙伴关系专责小组 & 比较靠谱的赌博软件 will keep you posted if and when this occurs. 与此同时， if you have any questions about PPP eligibility and calculations, 安全的赌博软件 today to speak with a specialist on our team.
By 保罗·麦克尤恩，注册会计师，MTax, AIFA (新费城会计师事务所)
Looking for more insight into PPP and your options for financial relief? 看看这些资源:
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