Much of the news recently around the Paycheck Protection Program (PPP) has focused on the second round of funding outlined in the Paycheck Protection Program and Health Care Enhancement Act. 

All of this against the backdrop of an extended stay at home orders and forced business closures mean many will continue to face challenging circumstances. The good news is that today, April 24, 2020, President Trump signed legislation that provides a combined $370B in additional funds for both the PPP and EIDL.

The number of restrictions and changes created by the COVID-19 emergency has left many business owners and employees with more questions than answers. The effect of stay at home orders and forced business closures have resulted in a drastic reduction in demand for certain products and many services.

The COVID-19 emergency has left many Philadelphia and New Jersey companies without revenue or means to generate cash flow. The combination of forced business closures, shelter-in-place orders, and general concern about exposure to the virus has left businesses without customers and dwindling demand.

The COVID-19 health crisis has significantly reshaped the business landscape. The convergence of forced business closures and dwindling demand for services has forced many to make difficult business decisions.

The impact of the COVID-19 emergency has had a widespread impact on individuals, families, and businesses. The implementation of forced business closures and shelter in place orders have left many companies facing surreal challenges. With limited or no opportunity to generate revenue, businesses have been forced to terminate or furlough employees leaving many without jobs and income to pay essential bills.

This is an update to our previous post published on April 3, 2020, regarding the Paycheck Protection Program (PPP). Since then, the Small Business Administration has announced that the interest rate is set at 1%, and the calculation of average payroll costs is based on gross payroll without deductions for taxes.

The CARES Act is designed to stimulate the U.S. economy through various tax credits, and one of the resources available to qualified businesses is a loan opportunity called the Paycheck Protection Program (PPP).

The bipartisan $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act is the single largest, and the most wide-ranging, potentially game-changing stimulus package ever created by the federal government.

The federal government responded with two important pieces of legislation, including the Families First Coronavirus Response Act and the Coronavirus Aid, Relief and Economic Security (CARES) Act.  They both provide significant compliance changes, but more importantly, outline various tax changes, loan options, and additional assistance for independent schools.