November 24, 2020
Clarification Issued on COVID Relief: Expenses Related to PPP Loans
Last week, the U.S. Department of the Treasury and Internal Revenue Service released a clarification that confirmed the expenses related to a Paycheck Protection Program (PPP) loan are not tax deductible. The guidance applies to loans that have been forgiven by the Small Business Administration (SBA) this year and loans that businesses believe will be forgiven next year. Read the full statement: https://home.treasury.gov/news/press-releases/sm1187
The CARES Act, passed in March, established the Paycheck Protection Program (PPP)
. PPP loans are designed to help small businesses avoid closure or layoffs, and can be used to cover payroll, utilities, insurance premiums, and rent and mortgage interest payments on a facility. This program closed August 8, 2020 and SBA is no longer accepting PPP applications from participating lenders .
Check the SBA site
frequently for updated information on the PPP.
ASA’s economic relief resources