Paycheck Protection Program

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.

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.

One-Page Summary of the Paycheck Protection Program

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Paycheck Protection Program Summary

Based on the number of phone calls and emails we are receiving it is clear there is still much confusion about the Paycheck Protection Program loans. This emergency loan program was created by the CARES Act.

To help business owners better understand what the Paycheck Protection Program may offer we have prepared a one-page summary which can be had by clicking here.

There are many details to the calculation and, especially calculating the forgiveness portion of the loan, so be sure that you actually read the entire law and regulations for the program or seek professional assistance. If you have questions or need help the team at Scholl & Company is here for you. You can call us at (831) 758-5966 or email us at success@schollcpa.com.

Paycheck Protection Program loan guidelines have a few surprises

Today, the day before banks (at least precious few banks based on what we are seeing and hearing) began taking applications for Paycheck Protection Program loans. Last evening the Small Business Administration released an “interim final rule” (doesn’t sound too final with that description). The rule updated the application process with changes from previous discussions and differences from the text of the CARES Act as follows.