For many businesses, the Paycheck Protection Program (PPP) under the CARES Act has been a lifeline to continue to pay employees and to generally stay in business altogether. Most businesses that sought PPP money have received funding and are now considering how they will fare under the PPP rules for loan forgiveness as the end of the original 8-week “covered period” was approaching quickly. New development: On June 3, 2020, the Senate passed the Paycheck Protection Program Flexibility Act of 2020 (the “Flexibility Act”) by unanimous consent. The House had previously passed the bill overwhelmingly and the President is expected to sign it.

SBA Releases Additional PPP Guidance- On May 13, the Small Business Administration (SBA), in consultation with the Department of the Treasury, provided additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP). Webinar On-Demand: Paycheck Protection Program Loan Forgiveness-  DMJ’s Senior Tax Manager, Jeff Marko, CPA, provides an overview of the most frequently asked questions and provides answers in regards to loan forgiveness. 

In Notice 2020-32 the IRS lays out its legal argument that the expenses covered by the forgiven Payroll Protection Program (PPP) loans represent an expense related to tax-exempt income under Code Section 265(a). Thus, the payment of the expenses (salaries, rents, interest, etc.) that qualify the PPP loans for forgiveness is also not deductible.

DMJ & Co., PLLC and DMJ Wealth Advisors, LLC, is excited to announce that the firm’s Durham, North Carolina office is relocating to a new space just down the street from its current location. DMJ will occupy a second-floor office suite in the SouthCourt building close to University Drive on Shannon Road. The move will be effective on Monday, May 4.