Stimulus Bill Update Ppp

Second ppp appears inevitable with new stimulus bill by micpa dec 15 2020 the last two weeks of the year are suddenly upon us and many are wondering if congress will be successful in their endeavor to pass a second stimulus package.

Stimulus bill update ppp. The bill clarifies that qualifying business expenses paid with forgiven ppp funds will still be tax deductible. Because the smallest businesses and those located in low and moderate income areas were often shut out of the first round of ppp funding this bill includes set asides for small businesses with. This supersedes irs guidance saying that if you paid business expenses with forgiven ppp funds the expenses would not qualify for small business tax.

Part of that bill was the economic aid to hard hit small businesses nonprofits and venue act which made changes to all paycheck protection program ppp loans re opened the ppp program for new loans and allowed certain borrowers to obtain a second ppp loan. On december 27 2020 president trump signed the 2021 consolidated appropriations act which also contained the latest stimulus relief bill. This is the largest bill ever passed by congress at over 5 500 pages.

The bill would expand the ppp program to allow some businesses to receive an additional loan. 22 2020 congress passed the latest covid 19 relief bill. The second loan called a ppp second draw loan is targeted to smaller and harder hit businesses.

The consolidated appropriations act 2021 the act was passed by congress on december 21 and includes some significant changes to the paycheck protection program ppp. New stimulus bill includes second round of ppp loans for small business and forgiveness rule changes favorable to borrowers. The bill includes more than 284 billion for first and second forgivable paycheck protection program loans expanded ppp eligibility for nonprofit organizations and news outlets and modifications.

The act not only provides for a second draw for certain borrowers but it includes a flurry of changes to existing ppp loans highlighted by modifications to the tax implications eligibility for the employee retention credit and a more simplified forgiveness process for loans 150 000 and below. It contains over 900 billion of additional stimulus funding and provides for several key tax extenders and other tax changes. In particular the consolidated appropriations act 2021 addressed business requests related to the next rollout of paycheck protection program ppp loans ppp loan forgiveness ppp expense deductibility and individual stimulus.

Congress at last passed a second stimulus bill this week as of this.