An Update from Huck Bouma PC Regarding
Paycheck Protection Program Loans
As we continue to try to keep informed of developments with respect to the PPP loan program, the following additional guidance is pertinent:
 
1.     The SBA has updated its FAQs - which can be accessed with the following link: SBA PPP Frequently Asked Questions . In particular, FAQ 39 indicates that following a lender’s submission of a borrower’s loan forgiveness application, the SBA WILL review all loans in excess of $2,000,000 and may also review other loans “as appropriate”. It is unclear whether the $2,000,000 figure relates to the loan amount approved versus the loan amount retained. For example, if a borrower applies for a $2,500,000 loan but returns $600,000 prior to May 7, 2020, will the SBA consider this a $2,500,000 loan or a $1,900,000 loan? Again, this is not clear. This FAQ comes on the heels of the previous FAQ 31 issued by the SBA recommending that borrowers re-consider the good faith certification of need for PPP loans.
 
2.     The IRS has issued Notice 2020-32 – which can be accessed with the following link: IRS Notice 2020-32 . This Notice provides that expenses incurred which are forgiven under the PPP loan program are NOT tax deductible. The IRS believes this directive will prevent a “double tax benefit” because amounts forgiven under the PPP loan program are not subject to federal income tax. 
 
As always, we are here to assist, and we can review any documents you have received to advise you of any such issues we notice.

-Bill
William J. Strons
Shareholder
Huck Bouma PC
Attorneys At Law
1755 South Naperville Road, Suite 200, Wheaton, IL 60189
Phone: 630.221.1755 | Fax: 630.221.1756 | Email: wstrons@huckbouma.com
Please visit our website at:   www.huckbouma.com