Today’s blog provides the latest updates on the Payroll Protection Program (PPP). including the SBA’s policy guidance as provided in  SBA’s PPP Loans Frequently Asked Questions (FAQs).

The IRS has issued Notice 2020-32 that provides guidance regarding the deductibility of expenses that result in PPP loan forgiveness. The IRS states that “no deduction is allowed…..for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the (CARES Act).” 

Sharrard, McGee & Co. has created Instructions for calculating the Payroll Cost portion of loan forgiveness. 

In addition to payroll costs, certain payments for rent, mortgage interest, and utilities are also eligible to be paid using PPP loan funds.  We have seen multiple variations on PPP loan forgiveness calculation methodologies; some appear simple yet do not include all the nuances of the Act language. We will continue to monitor and interpret authoritative guidance as it becomes available. 

If we can assist in any way, or if you have questions as you work through the many facets of loan forgiveness considerations, please do not hesitate to contact us. Call us in High Point at (336) 884-0410 and in Greensboro at (336) 272-9777.