Washington Leaves Millions Of Small Business Owners Without Direction
Many small business owners, myself included, applied and received a PPP loan last spring. And like many, I’m still waiting for direction on how to apply for loan forgiveness. It is now October, 2020 and I have received no news from the bank that processed and funded my loan.
I contacted my CPA to ask for direction on how to apply this loan to my records. My main question was, “How do I apply this loan when it is forgiven?” He basically said, apply it as income and pay taxes.
With the end of 2020 approaching and no word from Washington on how to apply for forgiveness, another set of issues must be faced. If this loan is forgiven in the upcoming tax year, can I deduct 2020 expenses paid with PPP money?
Washington has left millions of small business owners without any direction. We need direction now on how to proceed and ask for forgiveness on the $525 billion in Paycheck Protection Program (PPP) loans we received under the CARES Act.
With the pandemic rising across the country many small businesses are still suffering losses of income. Now with an unknown tax bill hanging over their heads, many business owners are wondering if applying for a PPP loan was a good idea. Congress, what do we do?
Darlene Ziebell brings over 40 years of experience in business consulting and entrepreneurship. Her methods are based on a unique blend of large enterprise strategies and the battle scars she acquired in four businesses including startups, mergers, ESOP, acquisitions and partnerships. One of her many endeavors was a business management consulting firm with a client base representing 20% of the Fortune 1000. She is an advisor to business owners training them on successful growth strategies through her Empowering Entrepreneurs methodology. Research her new book, A Dozen Avalanches Threaten Small Business, for more information.