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ARTICLE · 18 MAY 2020

Paycheck Protection Program: Certain Tax Issues Involving Loan Forgiveness

Wilson Elser Moskowitz Edelman & Dicker LLP
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The Paycheck Protection Program was established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act and is implemented by the Small Business Administration with support from the Department of the Treasury.

United StatesTax
Islame Hosny
Islame Hosny
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The Paycheck Protection Program (PPP) was established by section 1102 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is implemented by the Small Business Administration (SBA) with support from the Department of the Treasury. The PPP is intended to provide relief to certain small businesses in the form of loans during the coronavirus pandemic. One important attribute of PPP loans under the CARES Act is that such loans are eligible for forgiveness if the loan proceeds are spent in the manner prescribed by the CARES Act and SBA guidance. Another important attribute of PPP loans is that the forgiveness of such loans is not taxable to the borrower for federal income tax purposes.

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