Washington Wire

Business Community Rallies Around Paycheck Protection Program

May 21st, 2020|

One hundred and twenty-seven national trade groups sent a letter today to Congressional and Administrative leaders asking them to quickly enact three key improvements to the Paycheck Protection Program (PPP):

  • Eliminate the unnecessary 75/25 rule;
  • Extend the eight-week period for purposes of calculating loan forgiveness; and
  • Extend the June 30 safe harbor date for rehiring and restoration of pay.

The S Corporation Association eagerly signed this letter.  The PPP is the single-most effective program Congress

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HEROES Act Kicks Businesses When They Are Down

May 13th, 2020|

House leadership released their HEROES Act yesterday with a plan to vote on it Friday.  The bill includes an eye-popping $3 trillion in assistance to families, businesses, non-profits, and governments.

One item that stands alone in this tidal wave of spending is the repeal of the NOL and loss limitation relief enacted as part of the CARES Act.  Where almost all the other HEROES Act provisions reduce costs on businesses, this one would hike their

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More on NOL and Loss Limitation Relief

April 24th, 2020|

Allowing businesses to use losses to offset income earned in prior years is a longstanding anti-recession policy with solid bipartisan support.  It was adopted after the 9/11 terrorist attacks, after Hurricane Katrina, and again following the financial crisis.  It is simply a way to give businesses suffering losses the ability to recognize those losses more quickly.

Yet now some are charging that the bipartisan loss limitation relief included in the CAREs Act is a “massive”

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Main Street Support for Paycheck Protection Loans

April 15th, 2020|

More than 200 national and state-based trade groups wrote to congressional leadership today calling on Congress to increase funding for Paycheck Protection Program (PPP) loans.

That program was authorized by the CAREs Act last month and, among many other programs, provided individually and family-owned businesses with $350 billion in loans to help those businesses retain their employees during the COVID-19 crisis.

According to the latest figures from the Small Business Administration, however, applications to date number

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Washington Post Supports “Recession Bombs”

April 14th, 2020|

Is the loss limitation relief in the CAREs Act an unwarranted giveaway, as claimed by the Washington Post this week?  That’s a big “N-O.”  As others have noted, this relief prevents the “recession bombs” of the underlying NOL and loss limitation rules from inflicting damage on Main Street during the COVID-19 crisis.

Here’s the reality and why 120 Main Street business groups asked Congress to adopt this provision earlier this year:

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