logo
mobile logo
04 June
0 Comments
Sticky

Overview of the Modifications Made to the Paycheck Protection Program

Posted by Bobby Feisee
in Bobby's Blog, News

Congress took a big step in modifying the problematic Paycheck Protection Program (commonly referred to as the "PPP Program"). This program was created as part of the multi-trillion dollar aid package to help Americans and small businesses in the midst of the Coronavirus pandemic.  However, the lack of clear guidance on how to administer the PPP Program by the Treasury Department and Small Business Administration led to a chaotic roll out and a number of large businesses gobbling up funds meant for smaller businesses hit hardest by the economic shut down brought on by COVID-19. The chaotic roll out was followed by an array of defects, oversights, and administrative burdens that rankled the business community. One of the biggest concerns raised by many business owners related to the administrative complexity and burden associated with seeking PPP loan forgiveness. The numerous issues with the PPP Program prompted Congress to pass a series...

Continue reading
01 June
0 Comments
Sticky

Major Developments in the Paycheck Protection Program Pt. 2

Posted by Bobby Feisee
in Bobby's Blog, News

In addition to new regulations governing loan forgiveness, another major development with the PPP program was the passage of legislation that would significantly modify key provisions within the program.  The U.S. House of Representatives, by a vote of 417-1, passed the "Paycheck Protection Program Flexibility Act." This legislation aimed to address numerous concerns raised by small business owners since the passage of the CARES Act. The PPPFA reduces the amount of the loan needed to be spent on payroll from 75 percent to 60 percent. This means you will be able to spend more of the PPP loan on rent, mortgage payments, utilities, and other expenses. Other modifications contained within the House bill includes: Lengthening the amount of time business owners have to use the PPP loan funds from eight weeks to 24 weeks. Extending the deadline to rehire workers to from June 30, 2020 to December 31, 2020. Lengthening the amount...

Continue reading
01 June
0 Comments
Sticky

ALERT – Major Developments in the Paycheck Protection Program

Posted by Bobby Feisee
in Bobby's Blog, News

There were numerous developments in the management and administration of the Paycheck Protection Program. The Treasury Department issued a series of new, and controversial, regulations detailing the steps necessary to qualify for loan forgiveness. and the U.S. House of Representatives passed a sweeping bill that would make major modifications to the PPP program.  So, if you have a PPP loan, make sure to read this article from start to finish. Let's start with the Treasury regs governing loan forgiveness. If you are a business owner hoping to utilize a reasonable, straight-forward PPP loan forgiveness process, you are going to be disappointed. The new regs regarding PPP loan forgiveness have been described as harsh, overly complicated, and byzantine. Here are some of the key takeaways: 1. The SBA retains authority to review any PPP loan at any time they desire The new regs state that the SBA maintains the authority to undertake a review,...

Continue reading
29 May
0 Comments
Sticky

Important Info for Any Business Owner Who Received a PPP Loan

Posted by Bobby Feisee
in Bobby's Blog, News

If you are a business owner who successfully applied for, and received, a loan through the Paycheck Protection Program, it is critically important to stay on top of those loan funds to ensure you comply with the program and remain eligible for loan forgiveness. Unfortunately, compliance can be extremely challenging since it seems like the rules governing the PPP program are constantly changing. Tip No. 1 - You Have 8 Weeks to Spend the PPP Funds If you received a PPP loan, it is important to understand that you cannot simply set that money aside. You need to utilize those funds for qualifying purposes within 8 weeks (i.e. 56 days). The proverbial clock starts to run on the date you received the loan. That is why I strongly recommend you circle the date you received the PPP funds and ensure to exhaust them within 56 days. Tip No. 2  - You Need to...

Continue reading
29 May
0 Comments
Sticky

Coronavirus Pandemic Highlights the Importance of Clear Health Care Directives

Posted by Bobby Feisee
in Bobby's Blog, News

CNN published a heart wrenching article by Louis Foglia that detailed his father's last days and tragic passing as a result of COVID-19. Foglia's article provided an immersive experience into the intense stress, anxiety and uncertainty that accompanies having a loved one in the hospital struggling to stay alive due to the Coronavirus. Foglia's father battled the Coronavirus for 31 days but ultimately succumbed to the deadly virus. I strongly encourage you to take the time to read Foglia's article from start to finish. It both encapsulates the life and memory of his father while also highlighting the immense importance of certain estate planning documents while someone is nearing the end of their life. For example, Foglia discusses the venture into his family home to try and locate a copy of his father's Health Care Directive and Last Will and Testament. While reading Foglia's article, I got the sense that estate planning and...

Continue reading
19 May
0 Comments
Sticky

Tips on How the CARES Act Offers Important Tax Incentives and Planning Opportunities

Posted by Bobby Feisee
in Bobby's Blog, News

The historic $2.2 trillion CARES Act contains an array of favorable provisions for individual taxpayers, but many of those provisions are only available in 2020. Nevertheless, there are also a number of lesser-known provisions that can be utilized for effective long-term financial planning and tax benefits. Withdrawing Funds from Your IRA Without Enduring Harsh Tax Penalties The CARES Act allows eligible individuals to take up to $100,000 of distributions from their Individual Retirement Account (IRA) or employer-sponsored retirement plan (e.g., 401k) during 2020 and receive the following relaxed tax rules: Exempt from the 10 percent early withdrawal penalty that would otherwise apply to individuals who withdraw funds from their IRA who are younger than 59 1/2. Individuals have the option to include all of the income from the distribution in 2020 income, or have it split evenly over three years (2020 thru 2022). You can repay the withdrawal any time during a...

Continue reading
10 April
0 Comments
Sticky

How Can I Get a Paycheck Protection Program Loan?

Posted by Bobby Feisee
in Bobby's Blog

One of the key provisions of the landmark CARES Act is the Paycheck Protection Program. Congress allocated $350 billion to this program enabling the Small Business Administration to provide loans to small business owners. The loans are fully guaranteed by the federal government. If you are interested in applying for a loan through the Paycheck Protection Program, here is the application in a fillable PDF format.  Objective of the Paycheck Protection Program The primary objectives of the Paycheck Protection Program include: Provide assistance to businesses so they can retain their employees; and Help businesses cover near-term operating expenses during the Coronavirus pandemic. Who is Eligible for a Loan Through the Paycheck Protection Program In evaluating the eligibility of a borrower through this program, a financial institution is required to consider two prerequisites: (i) whether the borrower was operational as of February 15, 2020 and (ii) whether the borrower had employees or independent contractors for whom...

Continue reading
09 April
0 Comments
Sticky

Do You Need to Amend Your Advance Medical Directive Due to the Coronavirus?

Posted by Bobby Feisee
in Bobby's Blog, News

One of my clients recently asked an important question about advance medical directives and whether amending this important legal and medical document is warranted in response to the Coronavirus pandemic. For context, my client has an advance medical directive stating that they do not want to be put on a ventilator. However, my client expressed a desire to be placed on a ventilator if they are infected with COVID-19. This prompted my client to ask – is it necessary to amend my advance medical directive in light of different treatment wishes for the Coronavirus? Answer: it is not necessary to amend an advance medical directive (i.e. living will) in this circumstance.   Why Amending an Advance Medical Directive Likely Is Not Needed In many instances, when someone has an advance medical directive in their estate plan, it typically states their wish not to be put on a ventilator, but ONLY IF a doctors say...

Continue reading