Jessica L. Jeane, J.D.
Director of Public Policy & Strategic Communications
January 30, 2021
The U.S. Small Business Administration (SBA), in consultation with Treasury, released late in the evening of January 29 updated Paycheck Protection Program (PPP) Loans Frequently Asked Questions (FAQs).
Specifically, the PPP FAQs have been updated with new questions 54 – 56. Notably, the document states that questions 1 – 53 are in the process of being revised to reflect changes pursuant to the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) enacted under the Consolidated Appropriations Act, 2021 (P.L. 116-260).
Shuttered Venue Operators Grant
A set of FAQs has also been released on the Shuttered Venue Operators Grant (SVOG) program created under section 234 of the Economic Aid Act. The FAQs provide information regarding eligibility, use of funds, and how to prepare for the application process, which is still in development.
Earlier in the week, the IRS released two pieces of guidance related to the PPP and the Employee Retention Credit (ERC). The first is in regard to an employer’s eligibility to claim the ERC even if the employer received a Small Business Interruption Loan under the PPP. “Any wages that could count toward eligibility for the ERC or PPP loan forgiveness ca be applied to either of these two programs, but not both,” according to the IRS.
Further, as noted in additional guidance, an employer can claim the ERC related to qualified wages on its 4th quarter 2020 Form 941, Employer's Quarterly Federal Tax Return if the employer:
- received a PPP loan and included wages paid in the 2nd and/or 3rd quarter of 2020 as payroll costs in regard to an application to obtain forgiveness of the loan (rather than claiming ERC for those wages), and
- the employer’s request for forgiveness was denied.
Additionally, an employer may report on its 4th quarter Form 941 any ERC attributable to health expenses that are qualified wages that were not included on the 2nd and/or 3rd quarter Form 941.
All updated PPP resources are available at www.sba.gov/ppp and www.treasury.gov/cares.
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