Vision Payroll

April 8, 2020

Tip of the Week: SBA Releases PPP Implementation FAQs

The Small Business Administration (SBA) recently issued a series of Frequently Asked Questions (FAQs) on the Paycheck Protection Program (PPP) which was passed as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

FAQs Address Issues of Concern for Borrowers and Lenders

According to the document:

Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule (“PPP Interim Final Rule”). The U.S. government will not challenge lender PPP actions that conform to this guidance, and to the PPP Interim Final Rule and any subsequent rulemaking in effect at the time.

Clarification Is Provided in Key Areas

Among the questions answered in this series of FAQs are the following:

  • Does the PPP Interim Final Rule require the lender to replicate every borrower’s calculations?
  • Are small business concerns required to have 500 or fewer employees to be eligible borrowers in the PPP?
  • Does that exclusion of compensation in excess of $100,000 annually apply to all employee benefits of monetary value?
  • Do PPP loans cover paid sick leave?
  • Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of the eligible borrower’s payroll costs?
  • How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven?

Contact Your Attorney for Further Information

If you have further questions after reviewing the FAQs, Vision Payroll recommends that you contact your attorney and your lending institution,

March 31, 2020

CARES Act Has Programs to Aid Small Businesses

Are you wondering what aid is available to small businesses? The US Senate Committee on Small Business and Entrepreneurship has released a guide to help. It provides useful information on the CARE Act (Coronavirus Aid, Relief, and Economic Security Act).

The Small Business Owner’s Guide to the CARES Act

The Small Business Owner’s Guide to the CARES Act is a helpful guide. It provides information on the following topics:

  • Paycheck Protection Program Loans
  • Small Business Debt Relief Program
  • Economic Injury Disaster Loans and Emergency Economic Injury Grants
  • Small Business Counseling
  • Small Business Contracting
  • Small Business Tax Provisions

Synopses and FAQs Are Presented

Most of the areas covered have a short synopsis as well as a series of Frequently Asked Questions to help guide you to which program or programs are best for your business.

Consult Your Attorney for Advice

As with any major decision, Vision Payroll strongly recommends that you consult your attorney for advice in choosing the program that works for your business. These laws are new and complex and you need to be aware of all the ramifications before proceeding.

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