Some key changes were made to the Paycheck Protection Program (PPP) under the most recent COVID relief package. The relief bill includes $284 billion for another round of PPP loans. It also makes the process for loan forgiveness easier for loans under $150,000. After more than 700 business organizations lobbied Congress, additional changes were made to make the program more viable for those who need it.
“There’s a second provision that we’re really happy with in this bill and that is in response to a prior ruling by the IRS that would have treated PPP loans issued over this past year as taxable income,” said Kirk Wilbur, Vice President of Government Affairs at the California Cattlemen’s Association. “It really does not help producers if they get dinged in April 15 for having taken out these PPP loans. So, this legislation actually reverses that ruling by the IRS and clarifies that PPP loans will not be treated as taxable income for small businesses.”
Listen to the radio report below.