HSC
CORONAVIRUS COMMUNICATION
Edition #28
October 16, 2020
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HSC
COVID-19 Fast Response Team
We
are here to help!
In
these uncertain times with multimedia channels reporting conflicting
and sometimes incorrect information, our firm is working to add
clarity to this situation by providing new and verified information
as it becomes available to us. We have also set up a Coronavirus Resource Center on our website for ongoing information.
In
addition, we have created the HSC COVID-19 Fast Response Team to
serve our clients in addressing the difficult decisions they are
being faced with on a daily basis. This dedicated multi-disciplinary
team consists of our tax, payroll, HR, capital markets and accounting
professionals.
If
you have questions or would like to speak with this team, please
contact your HSC team member or Kyle Wininger,
CPA,
CICA, CVA, CFE at kwininger@hsccpa.com.
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PPP
Forgiveness Simplified for Loans of $50,000 or Less
On
October 8, 2020, the SBA announced another Interim Final Rule (“IFR”)
– Additional Revisions to Loan Forgiveness and Loan Review Procedures
Interim Final Rules. This IFR is an exercise of rulemaking authority
by SBA jointly with Treasury regarding treatment of the forgiveness
rules as they apply to the 3.57 million PPP loans under $50,0000
which represents the majority of the number of PPP loans outstanding.
It has been discussed over the past two months in the media that the
Treasury was contemplating that smaller loans might eventually get
automatic or simplified forgiveness. The original threshold
mentioned was $150,000 in loan size or less, but the SBA and the
Treasury have finally approved these new application processes
for all loans under $50,000 (so long as there are not affiliated
Companies whose combined loans exceed $2 million).
Most
borrowers with smaller loans have been waiting for Congress to pass
additional legislation regarding PPP simplified forgiveness before
submitting their application for forgiveness. While there could
still be further legislation to come, this IFR provides the clarity
borrowers with smaller loans have been waiting on in order to move
forward with their forgiveness applications.
A
borrower that has a loan of $50,000 or less that qualifies and uses
the new SBA Form 3508S (or lender’s equivalent form) is exempt from
any reductions in the borrower’s loan forgiveness amount based on
reductions in full-time equivalent (FTE) employees or reductions in
employee salary or wages that would otherwise apply. In addition, the
level of support required to be submitted on these loans is limited
to only the payroll and non-payroll documentation necessary to
calculate the eligible expenses during the chosen covered period. The
elimination of the FTE reduction calculation and the Wage reduction
calculation greatly reduces the administrative burden for the
borrowers, lenders and the SBA for these loans under $50,000.
Below
are several helpful links:
PPP Loan Forgiveness Guidelines Video
Full October 8 article from the Journal of
Accountancy
Interim Final Rule
New SBA Form 3508S
New Instructions for SBA Form 3508S
If
you have any questions please contact Scott Touro, MBA at stouro@hsscpa.com.
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Harding,
Shymanski & Company, P.S.C. is a public accounting firm with
offices in Evansville, Indiana, and Louisville, Kentucky. We are one
of the largest accounting firms in Southern Indiana and Kentucky,
providing experienced professionals who look beyond the numbers to
the heart of complex issues. Our clients range in size
from small proprietorships to billion-dollar corporations, from
closely-held and family-owned businesses to publicly traded firms,
and span nearly every industry. They all have one thing in common:
they count on our expertise to capitalize on their opportunities and
make the best of their challenges.
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Evansville Office
21 SE Third Street
Suite 500
Evansville, IN
47708
(812) 464-9161
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Louisville Office
545 S Third Street
Suite 102
Louisville, KY
40202
(502) 584-4142
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As a reminder, you are
receiving this email because you are a valued client of Harding,
Shymanski & Company, P.S.C. For more information on our
company, please visit our
website.
Harding,
Shymanski & Company, P.S.C
Office locations
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