The Paycheck Protection Program Flexibility Act of 2020, or PPP, was passed in order to provide small businesses across the United States crucial relief during widespread government shutdowns due to the COVID-19 pandemic. These loans can be forgivable when proceeds are used for payroll, rent, mortgage interest and utilities. Congressional leaders intended for PPP funded expenses to be deductible like other business expenses.
Despite the intent of Congressional leaders, additional legislation is needed to make PPP funds used to pay business expenses deductible. The failure to allow these deductions will have a devastating impact on small businesses struggling to keep their doors open and retain their employees.
Are you a small business owner who thought salary and expenses paid by PPP loans would be deductible? Do you rely on a small business to provide for your livelihood? Are you someone who supports the small business community and wants to see small businesses make it through this pandemic?
We suspect most of you answered yes to one or more of these questions. We
suspect most of you answered yes to one or more of these questions. Accordingly, please contact your Congressional leaders and ask them to sponsor and strongly advocate for legislation that makes salary and other business expenses paid for by a PPP loan deductible!