April 1, 2020
The
Coronavirus Aid, Relief, and Economic Security (CARES) Act
allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the
Paycheck Protection Program (PPP),
the initiative provides 100% federally guaranteed loans to encourage small businesses to retain their employees.
All businesses including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable
SBA employee-based size standards
for those industries.
As stated in a previous alert, PPP loans can be forgiven to the extent that the loan proceeds have been used for payroll costs and the following: Certain utilities, including electricity, gas, water, transportation, and phone and Internet access for service that began before February 15, 2020 and additional wages paid to tipped employees. These costs must be incurred and paid during the eight weeks after the loan is made.
We will share more details as they become available. Please visit our
COVID-19 Resource Page
for more updates.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at
Richard.Higgins@MCC-CPAs.com
. I can be reached at
Marty.McCarthy@MCC-CPAs.com
. As always, we are happy to help.
Stay Safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
