In a memorandum released in September 2022, the IRS has confirmed that if a PPP loan was forgiven based on misrepresentations or omissions by the taxpayer, the taxpayer is not eligible to exclude the forgiven amount from income.  Any portion of the loan proceeds that were forgiven in error must be included in their gross income. 

When the Infrastructure Investment and Jobs Act was signed into law on November 15, 2021, it opened the door for necessary repair and upgrades to the nation’s crumbling infrastructure. The massive spending bill calls for a $1.2T investment in roads and bridges, power grids, rail services, broadband access, water infrastructure, airport development, and environmental remediation. When Congress was negotiating the legislation, there was significant concern about how it would be funded without inflating the national debt. This need for funding resulted in the early termination of the Employee Retention Credit (ERC). It has been estimated that the move will save the federal government $8B, redirected to offset expenses.

The Biden Administration’s Build Back Better Act (the Act) is designed to reduce costs, create new jobs, and cut taxes for working families. In addition, there are proposed investments in health and childcare, higher education, workforce training, and teachers and schools. The cost of the legislation, which is estimated at $3.5T, will be paid for by increased taxes on corporations and the wealthiest Americans.

Since earlier this year, the Biden Administration has been pursuing a legislative agenda that focuses on COVID-19 economic recovery and re-energizing the American economy. It started with the American Rescue Plan Act and has continued with several other proposals culminating in the Build Back Better Act (the Act). The Act is designed to reduce costs, create new jobs, and cut taxes for working families. There are proposed investments in health and childcare, higher education, workforce training, and teachers and schools.

The U.S. Small Business Administration’s (SBA), 8(a) Business Development Program, offers disadvantaged small businesses access to sole source and other government contracts. Program participants enjoy several benefits that make it easier to win work with the federal government, the details of which we have summarized below.

The arrival of the COVID-19 Delta variant has many New Jersey and Pennsylvania-area employers concerned about the potential for future economic challenges. The number of new cases in both states has increased at an alarming rate, and the anxiety is compounded by the expiration of several Small Business Administration (SBA) COVID-19 relief programs, including the Paycheck Protection Program (PPP). Of the few remaining programs, the Employee Retention Credit (ERC) offers a compelling savings opportunity and is still underutilized by businesses and nonprofit organizations.

The Paycheck Protection Program (PPP) was one of the Small Business Administration’s (SBA) most popular COVID-19 relief programs and officially came to a close at the end of June. These loans were in such high demand primarily because of the possibility of loan forgiveness, assuming certain conditions were met. Now that the ten-month covered period is quickly winding down, the attention amongst borrowers has shifted to the loan forgiveness process.  Many PPP first draw loans have an August, September, or October 2021 deadline to apply for forgiveness, so now is the time to start evaluating how to maximize PPP forgiveness and the Employee Retention Credit.

During the COVID-19 pandemic, many New Jersey and Pennsylvania businesses faced significant operational, financial, and working capital challenges. Due to government regulations, the almost overnight changes often left companies with no way to generate income or pay expenses. These challenging circumstances forced some to close while others sought to take advantage of new federal relief opportunities available through the Small Business Administration (SBA).

The COVID-19 pandemic created a host of financial and operational challenges for New Jersey and Pennsylvania-area businesses. Combining stay-at-home orders and forced business closures meant many had to modify operations to sustain the business quickly.

The light at the end of the tunnel is shining brighter for many New Jersey and Pennsylvania-area individuals and families. The distribution of the vaccine combined with reductions in COVID-19 cases has resulted in the rollback of government orders. As the end of the pandemic appears to be drawing closer, the unfortunate reality is that many businesses are still struggling to recover.