PPP Loan Forgiveness: What You Need to Know
G&A Partners invited tax expert Rolando Garcia, JD, CPA, from Doeren Mayhew’s Tax Group, to shed light on some of the more pertinent questions small-business owners in the U.S. might have regarding new legislative relief funding. Chief among those questions was whether some businesses should be liquidating assets and how to best manage payroll tax deferments while still qualifying for Paycheck Protection Program (PPP) loan forgiveness.
Garcia presented the G&A webinar, “PPP Loan Forgiveness: What You Need to Know,” on May 20 and shared his considerable insight on how to take advantage of the various relief options currently available. He provided an overview of the first three phases of pandemic relief legislation and offered information regarding a fourth bill currently being discussed in Congress, the $3 trillion Health & Economic Recovery Omnibus Emergency Solutions (HEROES) Act.
While the U.S. House of Representatives passed the HEROES Act on Friday, May 15, he said the bill was dead on arrival in the Senate. However, he said the bill will open dialogue and negotiations that he’s confident will lead to the fourth phase of relief legislation since news of the coronavirus first broke.
May 15 was significant for another reason, he said. It was the day the U.S. Small Business Administration released new guidance on the PPP that explains how to go about converting the loan into a tax-free grant if conditions for loan forgiveness are met. Garcia spent time examining those conditions and sharing tips to ensure employers covered all their bases. He also pointed out various guidance he called “tea leaves,” which he interpreted to be important but that could easily change down the road.
After highlighting key terms and identifying eligible payroll and nonpayroll costs, he went a step further and taught the audience how to calculate their own PPP loan-forgiveness amount, providing a step-by-step approach to converting their loans into grants.
This webinar is full of helpful guidance and resources to ensure every PPP loan borrower has what they need to determine where they stand with their loans. Garcia filled the hour with tools and calculators designed to make the complicated process a breeze. Watch it today!