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Don’t miss out! The second round of Paycheck Protection Program (PPP) funding for small businesses impacted by COVID-19 will be open to more organizations tomorrow – January 15, 2021. The US Small Business Administration and Treasury announced jointly that the application window for Paycheck Protection Program (PPP) forgivable loans will open tomorrow for lenders with $1 billion or less in assets. The opening is scheduled to start at 9AM for both first- and second-draw PPP loans. Additionally, the program will begin accepting applications for first- and second-draw loans from large lenders on Tuesday, January 19, 2021. 
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​Yesterday, the Paycheck Protection Program (PPP) reopened in a limited capacity. Monday’s opening was scheduled to be a specific window for financial institutions that serve minority and women-owned business to apply for first-time PPP loans. On Wednesday, the program will begin allowing these financial institutions to begin accepting applications for second-time PPP loans.

As part of the CARES Act the SBA paid six months of principal, interest, and associated fees that borrowers owed for certain types of loans. If you already received six months of loan payments, the Consolidated Appropriations Act brings some added benefits.
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Yesterday the IRS began depositing the second round of Economic Impact Payments (EIP) to qualifying individuals. Although they should have begun making direct deposits as early as last night they indicated that direct deposits will continue to be processed into next week.
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This week the U.S. Senate and House of Representatives passed the second round of COVID relief, the Consolidated Appropriations Act. The legislation provides another round of economic impact payments to individuals as well as additional funding for small businesses. Certain eligible small businesses who received the first wave of the PPP loan may be eligible to apply again. The legislation also opened the applications to non-profits, independent contractors, sole proprietors and the eligible self-employed. Additionally, the most anticipated guidance on the tax treatment of the Paycheck Protection Program (PPP) loan has been made clear.

As we head into year-end there are a lot of questions regarding accounting for the Paycheck Protection Program (PPP) proceeds.  There have been many articles and discussions around the tax treatment of PPP but we should also keep in mind the book accounting treatment for PPP proceeds.  The Journal of Accountancy published an article about the book treatment back in June which explains some options for the book treatment of PPP proceeds.  These options should be considered for both for-profit and not-for-profit organizations.  
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In addition to November 10th being National Accountants Day and National Cupcakes Day, the IRS has also decided to add National EIP (Economic Impact Payment) Day to this list.
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The SBA recently released news that large PPP Loan borrowers (businesses receiving loans of $2 million and above) must now complete forms on the necessity of the loan. SBA Form 3509 is for For-Profit borrowers and SBA Form 3510 is for Non-Profit borrowers.

Mallory Vincent, MBA •

With the holiday season approaching, tis the season for spreading kindness and being charitable. During the coronavirus pandemic, even more people and animals are in need, but many not-for-profits are struggling. By making a donation and giving a gift to charity, you are helping out others and spreading holiday cheer. This act of kindness could also be a great tax write-off, and in 2020 everyone will be eligible to receive a charity tax deduction on their tax return. Read on to learn some tips on how to make your donation count as a tax benefit on your 2020 tax return.
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Last week the IRS released guidance on how to report the deferral of withholding, deposits, and payments of certain payroll tax obligations.