Updated Federal Coronavirus Loan Program Offers More Relief, But Not All Colorado Businesses Qualify
Frisco restaurateur Bob Starekow received devastating news last week. Its Federal Paycheck Protection Program loan came with unexpected terms.
“My accountant informed me that due to the ‘income’ from the forgiven portion of the PPP loan, I will owe $ 45,000 in ghost income taxes,” said Starekow, owner of Silverheels Bar & Grill and Kemosabe Sushi. & Sake, in an email. December 15. “I would explain it better if I understood the extreme position of the IRS better.”
Taxes have been a sore point since recipients of the federal small business loan began to realize that if their loan was canceled – which made P3s particularly attractive – the business would not be able to deduct expenses normally allowed.
Congress overturned that IRS position Monday night by passing a new $ 900 billion COVID-19 relief program. And the continuation of the CARES Act brings back the popular small business loan program – with adjustments to keep the focus on small businesses and limit the loan amount. Companies that have received assistance for the first time can request a second dose of assistance.
“There are a lot of businesses in our communities that are suffering and in need of help. I think we’re going to see strong demand, ”said Justin Menge, executive vice president of commercial and industrial affairs at Alpine Bank in Glenwood Springs. “I think it’s going to be similar to the first round, where it was a rush for funds.”
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