PPP Updates from AHLA

By Florida Restaurant & Lodging Association (FRLA) Contact The U.S. Small Business Administration (SBA) this week released updated FAQs for the Paycheck Protection Program (PPP) as well an updated Interim Final Rule (IFR). The FAQs are updated to address a number of scenarios related to the PPP Second Draw program and other specific eligibility scenarios.   AHLA continues…

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COVID-19 Considerations, LIBOR, Debt Covenants, and PPP Forgiveness

By Mike Westervelt Principal CliftonLarsonAllen Email T. 704.998.5288 Key insights Read debt agreements fully and consider restrictions as you address debt covenant compliance. Review PPP loan forgiveness considerations and the potential impact on your financial reporting and tax strategy. In response to interest rate manipulation, LIBOR will be discontinued on December 31, 2021. 2020 will…

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New Coronavirus Stimulus Package? Not Anytime Soon…

By Walker Wilkerson Managing Principal of National Assurance Email T. 863.680.5639 Key insights The outcome of the January 5, 2021, Georgia election runoff will largely determine if the country could have political gridlock or sweeping change. Congress would like to avoid another government shutdown and may be ready to strike a deal. The U.S. Senate…

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Treasury Disallows 2020 Deduction for Expenses Paid Using Forgivable PPP Loan Funds

By Jack Rybicki Managing Principal of Industry, CliftonLarsonAllen Email T. 813.3842701 Key insights Revenue Ruling 2020-27 sets forth the IRS’s determination that a PPP borrower may not deduct eligible expenses on its 2020 tax return if the borrower has a “reasonable expectation” that its PPP loan will be forgiven. “Reasonable expectation” is present regardless of…

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SBA Begins Effort to Assess Economic Necessity for PPP Loans Over $2 Million

By Rick Krueger, Principal CliftonLarsonAllen T. 414.721.7577 Email Key insights SBA Forms 3509 (for-profit) and 3510 (nonprofit) shed light on how the SBA is likely to assess economic necessity for borrowers with PPP loans of $2 million or more. The loan necessity forms do not introduce any new eligibility standards, but provide previously unknown details…

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Does SBA Understand Farming

By Paul Neiffer Principal CliftonLarsonAllen Walla Walla, Washington Email T. 509.823.2920 It was very apparent from the beginning of the PPP loan process that SBA did not understand farming.  I know I listened to a webinar where a SBA manager indicated farming did not qualify since they would get their stimulus from UDSA which was…

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Strategies to Mitigate the Risk of Buying a Company That Received PPP Loans

By Jeff Servais Principal CliftonLarsonAllen Email T. 972.383.7713 Key insights Require a seller to repay any PPP debt at closing to eliminate pitfalls. Delay the closing or make it an asset purchase, but understand the pros and cons to each strategy. If you assume the PPP loan, perform appropriate due diligence and set up the…

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Middle Market M&A and Coronavirus: What’s Next?

By Joe Baez Principal CliftonLarsonAllen Email T. 630.368.3619 Key insights Despite an initial downturn in M&A due to COVID-19, CLA has seen the market bounce back and continue a positive trend. The buyer’s market is flush with cash, increasing the demand for new acquisitions. On the other side, most family- and entrepreneur-led businesses looking to…

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New COVID-19 Safety and Soundness Standards for Financial Institutions

By Erica Crain, Manager CliftonLarsonAllen Email T. 314.925.4488  and Susan Sabo, Principal Clifton Larson Allen Email T. 704.816.8452 Key insights Asset quality will likely be a major area of focus for all examiners. Guidance predicts a possibility for reduced core earnings caused by the pandemic. Include strategies to address risk in your capital plans while…

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