The "Enhancement Act," signed on April 24, provides additional funding for the Paycheck Protection Program (PPP), after original funding ran out the previous week. It also provides additional guidelines for eligibility in response to funds being distributed to prominent public and private companies, many of which have since returned the funds. Offering funds to cover up to 8 weeks of payroll, the program's purpose is to reduce unemployment by helping small businesses retain employees, and enable them to rebound quickly once the pandemic is under control. New guidelines clarify that businesses receiving PPP funds must demonstrate that the loans are " necessary to support their ongoing operations," and that they do not have access to other sources of liquidity (see FAQ #31 in link above). Any business that received a PPP loan prior to the new guidance and now is considered to be at risk for being ineligible can repay the loan in full by MAY 7, 2020. Otherwise, there may be significant legal or regulatory consequences.

Complete and accurate documentation is crucial to support your eligibility for and specific use of these PPP funds, as well as your qualifications for forgiveness under the terms of the program. You may want to confirm with your lending institution what their specific requirements are.

More information on the PPP and other direct loan programs under the CARES Act are provided in the links below, and contact your Tax Manager if you need additional guidance!

While you're still safe at home, it's a great time to get all your tax documents ready to submit to your Tax Manager! If you want to file by the JULY 15th deadline, we must receive your information by JUNE 1st. Even if you want to extend until the fall, we will still need most of your information to calculate your tax liability. Remember that extension filings and estimated PAYMENTS are due on July 15th!

COVID-19 LINKS: