PPP

California taxes on Paycheck Protection Program (PPP) funds? Maybe not. 

The California saga for taxing Paycheck Protection Program funds continues.

The ever-changing landscape for how California will or won’t tax a business’s Paycheck Protection Program (PPP) funds continues to resemble a game of ping pong.

First, California lawmakers were clear they would tax the proceeds (by not allowing deductions paid with the funds). Then, as the political blow back about taking that position arose quickly, lawmakers proposed several pieces of legislation to partially change course.

It's here... well almost here, Congress has passed pandemic economic relief bill

Just before midnight last night Congress overwhelmingly passed legislation – the Consolidated Appropriations Act, 2021 – to both fund the continued regular running of the federal government and to provide additional economic help to both individuals and businesses affected by the current pandemic (https://docs.house.gov/billsthisweek/20201221/BILLS-116HR133SA-RCP-116-68.pdf). While the legislation has not been signed into law at the time of this writing, it is expected that the President will sign the Act.

The Act provides for a new round of Paycheck Protection Program (PPP) funding, makes Sec. 501(c)(6) not-for-profit organizations (Chambers of Commerce, trade associations, etc.) eligible for loans for the first time, offers businesses facing severe revenue reductions the opportunity to apply for a second loan and gives expanded PPP assistance to many hospitality businesses including hotels and restaurants.

Economic relief from Congress may be close, here are the details

At long last Congress appears to be nearing legislation that has a chance of passing and becoming law. The Emergency Coronavirus Relief Act of 2020 has a lot of parts to it — many of them moving parts. Of particular interest to most taxpayers and business owners is that of economic stimulus payments and another possible round for forgivable loans for businesses (Paycheck Protection Program round 2 or PPP2).

With the current political turmoil that exists, providing any odds for passage is impossible. However, in the meantime while we await passage we have prepared a recap of the Act for your reading pleasure or use as a sleeping aide. You can read our summary of the Emergency Coronavirus Relief Act of 2020 by clicking here.

New Positive Change for the Paycheck Protection Program!

Don’t be shocked now, the Paycheck Protection Program has changed… Again!

Following the rules, regulations and processes for the Paycheck Protection Program (PPP), Congress’ lifeline of working capital for small businesses, has been akin to trying to follow a superball bouncing in a small room. At least this most recent change is a positive one.

Economic Injury Disaster Loans, What you need to know.

HAVE YOU RECEIVED AN ECONOMIC INJURY DISASTER LOAN (EIDL)?

IF SO, BE SURE YOU KNOW WHAT YOU'RE SIGNING UP FOR.

Many businesses have recently received Economic Injury Disaster Loan (EIDL) documents from the SBA. These loans can be a real lifeline for a business impacted by the current pandemic disaster. But, don’t just rush to sign the loan documents and receive the funds until you fully understand what you are signing up for.

The House Just Passed Additional Paycheck Protection Program Loan Flexibility

Today the House passed by an overwhelming margin a bill to cut small businesses more latitude in how they use coronavirus lifeline loans. Known as Paycheck Protection Program loans (PPP). These are the loans that, when used within the rules of the CARES Act may be completely forgiven, essentially turning into a grant.