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PPP And EIDL Loan Advances And Changes Under New Act

 

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It is finally happening!

Hundreds of thousands of small businesses and millions of people have been waiting for a second round of Paycheck Protection Program (“PPP”) loans to keep businesses and professionals operational. The new law will help many of these individuals and businesses, but not all.

This proposed bill is being enacted to correct a number of problems that PPP borrowers have had, and also opens the door to new opportunities for borrowers who were not treated as well under the previous program.

While the official language Congress will vote on hasn’t yet been released, the primary changes that were in the bill as of earlier this week are as follows:

PPP Loans Which are Forgiven Will Be Deductible

The IRS has issued a series of Revenue Procedures and Notices that alarmed many PPP borrowers by stating that expenses paid for with forgiven loans will not be able to be deducted.  This was against Congress’s intent, and the proposed bill clarifies their position.  The proposed bill states as follows:

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Source: Forbes

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