More PPP Confusion

Ferrone & Associates CPAsUncategorized

The Justice Department is launching a probe into PPP lending calculations.

While the program has been a lifeline for many small businesses, many of its rules were unclear. One of the many challenges was how to account for federal, state and local taxes. Some lenders under-accounted for payroll taxes leading to a leaner loan total. Others over-accounted, meaning, depending on the company you received your loan through, you may have been shorted.

Due to the amount of loan applications received, many lenders were scrambling to keep up with the ever-changing rules and regulations. Including over 300,000 applications through one lender alone. It remains unclear whether these lenders will face any penalties.