On March 27, 2020, the President signed into law a massive and unprecedented economic rescue package to provide a capital infusion to individuals and businesses alike.
Perhaps the most significant and desperately needed program to be established under the law involves the ability for small businesses (defined as those with fewer than 500 employees) to borrow up to $10 million through Small Business Association (SBA) loans under the Paycheck Protection Program (PPP). Not only is an immediate infusion of capital being made available to possibly hundreds of thousands of small businesses across the country, but also a portion of the amount borrowed may be forgiven as an effective grant based on the costs of payroll and certain business expenses.
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• The average proportion of employees retained is 72.73%. Therefore, the total amount forgivable is reduced to $72,730.
Brooke Zrno Grisham, ChFC®, CLU®, AEP®, is the Chief Executive Officer of The Nautilus Group®, a service of New York Life that provides exclusive support to high net worth individuals and closely held business owners in the areas of estate, insurance, retirement and business exit planning, income tax strategies, planning for families with special needs individuals, and charitable giving.
The Nautilus Group® is a service of New York Life Insurance Company. This material includes a discussion of one or more tax-related topics and was prepared to assist in the promotion or marketing of the transactions or matters addressed in this material. It is not intended (and cannot be used by any taxpayer) for the purposes of avoiding any IRS penalties that may be imposed upon the taxpayer. Nautilus, New York Life Insurance Company, its employees or agents are not in the business of providing tax, legal or accounting advice. Individuals should consult with their own tax, legal or accounting advisors before implementing any planning strategies. © 2020 New York Life Insurance Company. All rights reserved.