VIENNA VA, APRIL 27, 2010 -- Member update from the American Boiler Manufacturers Association...
Paycheck Protection Program Relaunch
The Paycheck Protection Program relaunched today. Ahead of the rollout, the Small Business Administration (SBA) released new resources for businesses applying for loans under this second tranche of program funding. This includes an overview of how companies can calculate loan amounts, an updated FAQ document on how to count employees and a new interim final rule with guidance on affiliation and eligibility issues.
The SBA has also announced that individual banks will be limited to processing 10% of the total PPP funding and discouraged certain larger businesses and publicly traded companies from applying for the program. The SBA has further created a safe harbor to allow such companies to return any funds received before May 7 with no penalty. Larger companies can still explore financing options such as the Federal Reserve’s liquidity facilities funded by the CARES Act.
IRS Provides FAQs on Net Operating Loss and Transition Tax
The IRS has issued FAQs concerning the interaction of the CARES Act’s net operating loss provision and the Tax Cuts and Jobs Act’s transition tax. The TCJA imposed a one-time “transition tax” on previously unrepatriated foreign earnings as part of the transition toward a territorial system. The CARES Act’s NOL provision allows companies to use tax losses from 2018, 2019 and 2020 to offset income from the prior five years. For those with a transition tax (section 965 inclusions), the FAQs address how taxpayers should handle transition tax years with respect to carrying back losses. More information can be found here.
We encourage our members to bookmark ABMA's Coronavirus Resource Center which is a repository for all shared resources. The Center can be accessed by clicking here.
As always, we are here for you. Please stay healthy and safe.
Scott Lynch, President & CEO