Payroll Protection Plan

05/15/20

Business owners who received Payroll Protection Plan (PPP) funds from the SBA are indeed grateful that such support was provided in order assist them in maintaining their operations. Nevertheless, business owners, particularly those on Long Island, who accepted PPP monies in April are facing a problem -  the 60 day requirement to utilize the funds will be expiring shortly; however, the Governor will not allow the full re-opening of non-essential businesses until June at the earliest. Moreover, even essential businesses are facing an issue, as their ability to operate at full staff was either impossible or unnecessary. 

Therefore, there is a high probability that the majority of the PPP money issued will not be forgiven under current guidelines. As the law and regulations are unclear and continually changing, accountants and lawyers have found it extremely difficult to advise and guide their clients. I suggest you peruse this recent article in USA Today, which summarized the issue quite well. As the rules and guidelines are changing daily, our firm is diligently following all developments in this field so that we can properly guide and advise our clients.

Until new rules are issued, please continue to follow the current guidelines, and as always, continue to communicate regularly with your accountant.