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June 14, 2020 1:48 pm
The Senate has approved https://www.congress.gov/bill/116th-congress/house-bill/7010/tex t" aria-label="H.R. 7010 - Paycheck Protection Program Flexibility Act of 2020">H.R. 7010 - Paycheck Protection Program Flexibility Act of 2020. The bill passed the House on May 28th. The Paycheck Protection Program provided businesses with forgivable loans to cover payroll and other expenses. It was part of the CARES Act. The rollout was a source of muchhttps://www.merriam-webster.com/dictionary/tsuri s" aria-label="tsuris"> tsuris.
Not Easy
https://twitter.com/hashtag/taxtwitter?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Ehashta g" aria-label="#TaxTwitter">#TaxTwitter where tax professionals of various sorts kind of swap professional recipes and engage in remote group therapy practically turned into all Paycheck Protection all the time as CPAs and others who often are a business's most trusted advisers threw themselves into helping their clients.
The banks were supposed to share a piece of their 5% fees with agents, but generally decided to keep it all for themselves, because they are, you know, banks.
Regardless there was a lot of concern about how hard forgiveness was going to be, so the passage of this act is a big relief. Here are the high points.
It’s Easier
Topic starter
June 14, 2020 1:50 pm
In the original CARES model borrowers had eight weeks to spend the money. That has been extended to twenty-four weeks. Since the loan was based on two and half months of the prior year payroll (That is a simplification), that creates a significant breathing room.
Also to achieve full forgiveness a somewhat complicated head-count test had to be met by June 30. That has been extended to December 31, but more significant is relief in the event the borrower is unable to get people back. - How you gonna keep down on the burger grill after they got $600 per week unemployment?. The other possible source of relief is an inability to get back to the same level of business because of all that social distancing stuff. Here is the language on that.
June 16, 2020 2:30 pm
This is for sure going to have some interesting effects on the economy
