Dentists, other business owners, accountants, politicians – everyone – is frustrated with the SBA’s lack of guidance on the forgiveness of the PPP loans. The CARES Act required the SBA to release guidance on forgiveness by 4/26/2020 and as of now it has still not been released. The delay is hurting the effectiveness of the program as there are uncertainties in how the funds can be spent to ensure it complies with the program. The ADA, AICPA, and others have submitted requests that the PPP dates be expanded to account for the delay in guidance, and to account for the fact that some states have not yet allowed businesses to reopen. However, such action would literally require an act of Congress.
Common questions that remain a mystery:
- Can I pay a bonus to my staff and how much is allowed?
- Can I pay my 2019 retirement contribution?
- Can I pay my 2020 retirement contribution?
- Can I increase payroll to other family members?
- Can I begin paying wages to family members that previously weren’t employed by the practice?
- How do I calculate a full-time employee (FTE)?
- If I rehire employees by 6/30/2020, how long must I retain them to qualify for PPP loan forgiveness?
- Can I pay extra months of rent or utilities?
These are great questions which need answers. We are as frustrated as you by the continued response of “we just don’t know yet.” As soon as the SBA releases guidance on forgiveness we will update you. Stay tuned.