KRS Closed 7/3 in Observance of Independence Day

KRS will be closed on Friday, July 3, in observance of Independence Day. We will resume normal business hours on Monday, July 6.

Senate passes bill to extend PPP Loan Application Deadline to August 8th

The Senate passed a five-week extension of the Paycheck Protection Program (PPP) yesterday only hours before the application deadline.

The extension is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funding remaining. The measure will have to pass in the House and be signed by President Trump before the new deadline of August 8th would take effect.

IRS Update on Required Minimum Distributions

The CARES Act enabled any taxpayer with required minimum distributions (RMD) due in 2020 from a retirement plan to forgo the RMD this year. This included 401(k), 403(b), and IRA plans.

The IRS released Notice 2020-51, which states that anyone who already took an RMD in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account.

SBA Issues Interim Final Rule on Owner Compensation

The Small Business Administration (SBA) has issued a new interim final rule for determining payroll costs and owner compensation in calculating Paycheck Protection Program (PPP) loan forgiveness under the new 24-week covered period.

SBA Releases EZ PPP Loan Forgiveness Application

The Small Business Administration (SBA) has released a three-page “EZ” Paycheck Protection Program loan forgiveness application.  The EZ Loan Forgiveness Application is meant to reduce the burden on smaller businesses and borrowers by requiring fewer calculations and less documentation.

The new application is part of the SBA’s efforts to comply with the Paycheck Protection Flexibility Act (PPPFA), which became law on June 5, 2020.

NJEDA Emergency Grant Program Phase 2 Opens June 9

Applications for the NJEDA’s Small Business Emergency Assistance Grant Program Phase 2 open on Tuesday June 9, 9am. Phase 2, with $45 million available, offers larger grants (up to $10,000) and expanded eligibility to New Jersey’s small businesses, home-based businesses, sole proprietorships, and 501(c)(3), 501(c)(4), and 501(c)(7) nonprofit organizations.

Paycheck Protection Flexibility Act Passes in Senate

The Senate passed the House’s version of the Paycheck Protection Flexibility Act. The bill now goes to President Donald Trump, who is expected to sign it.

Among the chief provisions: current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they may keep the original eight-week period. In addition, the payroll expenditure requirement has been reduced from 75 percent to 60 percent of the loan.

Changes Coming to PPP

Both the House and Senate are working to make changes to the Paycheck Protection Program (PPP).

Last night, the House passed the Paycheck Protection Program Flexibility Act. The act makes several key changes to the PPP, among them increasing the timeline to use funds from eight weeks to 24 weeks.

More Guidance on PPP Loans and Forgiveness Released

The Treasury and U.S. Small Business Administration (SBA) issued additional guidance on the conditions for PPP loan forgiveness as well as loan review procedures, and borrower and lender responsibilities.