Stimulus Bill Ppp Loan Expenses

This supersedes irs guidance saying that if you paid business expenses with forgiven ppp funds the expenses would not qualify for small business tax.

Stimulus bill ppp loan expenses. 501 c 6 not for profit organizations eligible for loans for the first time and offers businesses facing severe revenue reductions the opportunity to apply for a second loan. It also ensures tax deductibility for business expenses paid with forgiven paycheck protection program ppp loans provides fresh ppp funding makes sec. Borrowing generally businesses can borrow up to 2 5 times their average monthly payroll costs in the year prior to.

You can get forgiveness for this ppp loan by spending at least 60 on payroll expenses wages salaries retirement group health insurance etc and a maximum of 40 on other qualifying expenses. The bill also clarifies that some eidl borrowers may also apply for a ppp loan. Highlights including deductibility of expenses for ppp loan recipients posted on december 22 2020 december 28 2020 the house and senate passed a new stimulus legislation that will include direct payments to americans jobless benefits and funds for businesses and vaccine distribution which the president signed on december.