PPP Loans
We have learned that the PPP loan forgiveness program will have a 14-day application pause starting today. The White House has announced some temporary administrative changes to the PPP loan process. Therefore, starting today, February 24, the SBA will only accept PPP loan applications from businesses with fewer than 20 employees. It is unclear if banks will continue to take applications and hold them during this 14-day period. The process should be up and running for everyone again beginning March 10th.
If you have less than 20 employees and want to start the process, the lenders may have more time to help you through the process during this time.
Please remember if you are eligible for the Employee Retention Credit (we have notified you if you are eligible), DO NOT apply for forgiveness.
State Rules for PPP Deductions (Do you love your state or not?)
Based on our research, we think if you live in SC or GA you will love your state. SC and GA are allowing the PPP deduction. In other words, they are complying with the federal government. YAY! No addback, no additional state taxes owed.
Now, NC residents, you may not love your state after this. NC will not allow the PPP deduction and we will have to add back the amount of the PPP loan for NC income. This annoys us (cuss words were said in our office) and it should annoy you too. Contact your NC legislators, although it may be too late since the forms are out.
What does this mean if you live in NC (or your practice is in NC)? You will pay more taxes to the state.
Last but not least, our research for our Ohio clients shows: we do not know. ☹ Legislators have not updated the conformity rules for 2020 tax returns. Tell them to do their work!
