Congress has allocated more than $600 billion to PPP loans, with, maybe, more to come. Many questions have arisen how businesses should use these funds and account for them to obtain the promised loan forgiveness. In the wake of large well-heeled companies such as Shake Shack and the LA Lakers applying for PPP loans, the Government has quickly released an ever more byzantine web of off the cuff rules, in the form of FAQs. Thus, the goal of PPP loans – to provide fast money to small businesses to avoid widespread failure and unemployment – has become more complicated to realize.
This program, presented in two parts, will, first, analyze how the money has to be used to obtain forgiveness and explain best practices to maximize loan forgiveness while minimizing administrative headaches, and a discussion of related tax problems; and, second, address issues concerning fraud, civil and criminal enforcement, and how audits of PPP loans may proceed.
We will also discuss the other financial support program established under the CARES Act and the Main Street Lending Program, currently under development by the Federal Reserve.