COVID-19 Relief Bill
Congress has finally passed the long-awaited 2nd COVID-19 Relief Bill. We are hopeful that President Trump will make the bill final very soon. I’ve read this is the longest bill in history at a whopping 5,600 pages! As you can imagine, there are many provisions within the bill, some of which will have little impact on you such as additional individual stimulus checks and extended unemployment benefits.
The most consequential result of the bill for you is a reverse of course on the ability to deduct expenses covered by PPP loans. This is a massive benefit for all of our clients.
The new bill also provides more funding to the Small Business Administration (SBA) for additional PPP loans. While additional loans will be more restrictive (only for entities with fewer than 300 employees, non-public, etc.), in our initial review it seems that many of you may be eligible for additional funding.
As with anything, we will need to evaluate the final provisions as well as the SBA’s interpretation, changes, and technical corrections, but no doubt this is positive news for PPP borrowers.
Below is a link to a Journal of Accountancy article that summarizes the impact of the bill on PPP-related issues. I will continue to communicate with you as additional updates are announced.