Latest Developments: Paycheck Protection Program and Employee Retention Credit
S.R. Snodgrass recently issued a Tax Update that summarizes the Consolidated Appropriations Act, 2021 (the “Act”)’s most significant provisions. As it provided a very high-level overview, we want to share additional details on two specific areas—the Paycheck Protection Program (PPP) and employee retention credit (ERC)—that are available to nonprofits and small businesses alike.
The U.S. Small Business Administration (SBA) and Treasury Department issued guidance on January 6, 2021, for the reconstituted PPP that included two interim final rules (herein IFR or IFRs) that consolidate the rules for PPP forgivable loans for first-time borrowers; outline changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), contained within the Act; and lay out the guidelines for new PPP loans to businesses that previously received a PPP loan. The below guidance has been updated in accordance with these IFRs.