A Paycheck Protection Program Update
For many of us, 2020 has been nothing but a new four-letter word. Unemployment has run rampant, long-standing businesses have shuttered their doors, people have gotten sick, and many have lost loved ones. Those businesses remaining open have had to deal with shutdowns, employees on medical leave, and, ultimately, having to create a whole new way of doing business. To help businesses from a financial standpoint, the U.S. Congress intervened with the CARES Act back in March. A significant component of this act was the creation of the Paycheck Protection Program (PPP), a series of government loans overseen by the Small Business Administration. The most important provision of this program was the premise that, assuming the loan proceeds were used for certain qualified purposes, 100% of the loan proceeds could be forgiven, and would not be considered taxable income.