After the initial funds for the Paycheck Protection Program (PPP) were depleted last week, Congress began negotiations on a fourth stimulus bill to provide additional funding. The Senate passed a bill yesterday that provides an additional $300 billion for PPP loans, and the bill is expected to be voted on by the House tomorrow, Thursday, April 23rd. If passed and signed into law, the PPP loans will be issued on a first come, first served basis, making it important for small businesses and self-employed individuals to gather documents, prepare applications, and continue working with their lending officers to ensure applications are filed as soon as possible.
As the available funds underpinning the forgivable loan program ran out late last week, the SBA finally issued additional PPP guidance for independent contractors and self-employed individuals. This supplement to the Interim Final Rule, issued earlier this month, provides much needed clarification for independent contractors and self-employed individuals, as well as additional guidance for general partners.
The message here is simple. If you are a partner or general partner, do not file a separate loan application. Only the partnership is entitled to apply for a PPP loan.
The SBA guidance allows for up to $100,000 of annualized self-employment income of general active partners to be included as wages in the PPP application filed for the partnership. While the guidance does not define a general active partner, we expect the intent is to exclude mere investors and other limited type partners who are not active participants in the partnership.
Are you a self-employed individual?
How do you calculate the maximum PPP Loan?
2019 Schedule C Net Profit (not less than $0 or more than $100,000)
Eligible Expenses for Loan Forgiveness
Assuming the fourth stimulus bill becomes law, it may not be too late to submit a PPP application. It is expected that any new funds will be depleted as fast, or faster, than the original PPP funding. With that in mind, ATKG strongly encourages clients to contact their banker and ATKG representative right away to apply. ATKG promises to keep you informed of any legislative changes.
Visit the ATKG Coronavirus newsroom for a complete listing of articles released by ATKG addressing the fast paced changes occurring in the US as a result of the COVID-19 pandemic.
|David Higginbotham is a Senior Manager with ATKG. He received his Bachelor of Business Administration in Accounting from The University of Texas at San Antonio. He is a firm believer of supporting his community and the public accounting industry. As a result, David currently serves on the Board of Directors for the Texas Society of Certified Public Accountants San Antonio.|
For further information on this topic or other tax questions please contact David at 210.733.6611 or firstname.lastname@example.org.
‘‘My father and I have used ATKG since the days of its founder James Ahern, and they have always provided excellent and accurate advice.’’
‘‘I can't name just one reason about Eric and Hayley! Their proactivity, creativity, collaborative spirit, and communication are all absolutely incredible.’’
‘‘Everyone that I have worked with at ATKG is extremely friendly, helpful, and always very responsive!’’
‘‘We appreciate ATKG's responsiveness, timeliness, and good communications’’
‘‘Very personable and knowledgeable. Over the years, I have created great relationships with Teryn Grater, Diane White, and the seniors and managers on my account.’’
‘‘I call them my ATKG team!’’
‘‘I couldn't be happier with the choice to move from EY to ATKG. A.J. Sturm, Diane White, Alisha Bell, and the support staff have been instrumental in helping me with a complicated Estate and Foundation scenario. Not only have they provided me with phenomenal accounting and tax advice, but they have also gone above and beyond to help me plan for today, tomorrow, and far beyond. Thank you, ATKG!!!’’
‘‘We continue to consider ATKG a part of our personal and business planning team. They are a professional firm with an impeccable level of service.’’
‘‘ATKG is very professional, responsive, and client-oriented. They are committed and make a point to communicate with annual meetings and anytime I have a question.’’
‘‘Angie Stone and her team provided valuable forensic accounting services and excellent litigation support in some complex family law cases handled by our firm.’’
‘‘Angie Stone and Courtney Mastin are prompt in their response to any inquiry our clients or I may have. Additionally, everyone at ATKG maintains a wonderful level of professionalism.’’
‘‘Great people, good response time, and helpful’’
‘‘Excellent customer service. Rapid response to questions!’’
‘‘Great people and very informative, up-to-date with ever-changing rules and guidelines in this ever-changing government!’’
‘‘ATKG is invested in my success and is highly responsive to my needs.’’
‘‘ATKG offers great customer service.’’
‘‘Prompt service and excellent forecasting. I also feel that I get tremendous support, more than I have received in the past.’’
‘‘Katie provides great service and is very knowledgeable.’’
‘‘Been working with ATKG for several years; they are extremely professional, knowledgeable and offer great customer service.’’
‘‘ATKG provides services up and above any other accounting firm I have ever used. They want to help their clients manage their wealth and offer to help teach their children about wealth and how to manage it.’’
‘‘She is friendly, responsive, and knowledgeable.’’
‘‘David and the ATKG team are knowledgeable regarding current tax issues, and they are extremely responsive to all questions.’’
‘‘A. J. is professional, knowledgeable, and provides friendly assistance.’’
‘‘Eric and Sarah do an excellent job handling our account and promptly answering questions. They are proactive in planning meetings and looking forward.’’
‘‘Our ATKG team, which includes Eric, Ruth, Katie, and Shannon is incredibly knowledgeable, professional, and supportive of our business. Client service always feels like it is at the forefront of their mind.’’
‘‘Loyal, excellent service over 35 years with Melanie and her team.’’
‘‘Our interactions with Diane and the ATKG team are always a model for how a professional services company should interact with its clients. With ATKG, we know that our finances are in good hands.’’
‘‘Melanie, Teryn, and Sandy have clearly had my and my family's best interests at the forefront. I have had a 19-year relationship that has proved to be very beneficial to my family and me.’’
‘‘Melanie, Teryn, and Katie offer us confidence.’’
‘‘Diane and Shannon are a critical resource and partner to our firm. They are knowledgeable, responsive, and dependable on all levels.’’
‘‘Diane and Shannon provide great service. They are very knowledgeable and are always willing to assist our group with sage advice.’’
‘‘Teryn is always quick to respond to questions and on top of the latest accounting rules.’’
‘‘Amanda and Shannon offer us consistent communication’’
‘‘Great work, timely, and the best part....nice folks!’’