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PPP and CARES Act Update

Updated: Jul 26, 2022

The CARES Act provided for hundreds of billions of dollars of emergency loans to help businesses stay afloat during the COVID-19 pandemic. Based on the number of questions we’ve fielded over the last week, it seems like almost every single business is looking at these loans and no one knows how to get them. Below, we’ve assembled some useful information from our friends and colleagues at KBKG, Forbes, Bloomberg Tax, Tax Foundation, and the US Treasury that will hopefully help you make sense of the new and expanded loan options.

We focused on the Paycheck Protection Program (PPP) loan more than the Economic Injury Disaster Loan (EIDL), as the potential for tax-free forgiveness of these “loans” has generated more significantly more buzz than the EIDL loans.

A few last comments before the links:

- Treat the PPP as a true loan. Expect that you’ll have to pay it back before deciding whether it is right for your business. Loan forgiveness will be determined by the bank or lending institution, not the SBA, and there is extremely limited guidance available as to what will be required in order to apply for and receive forgiveness.

- In addition to the loans, there are significant payroll tax credits and deferrals available to businesses that can help preserve cash flow. The PPP loans impact your ability to qualify for the payroll tax credits, even if your PPP loan is not ultimately forgiven.

- Be patient with your bankers. They didn’t get an advanced copy of this and are struggling to figure it out just like the rest of us.

- Look before you leap. There are many different approaches for COVID-19 relief and each one has a different impact and outcome. It’s a worth while to take the time to understand how the various options may play out for your business’s unique circumstances.

- Stay safe, wash your hands, help your neighbors.

KBKG - A Comparison of the PPP and EIDL Loans

Forbes - Tony Nitti on the PPP Loan Calculation

Forbes - 10 Things for Small Businesses

Bloomberg Tax - Payroll Loans and Credits

Tax Foundation - PPP Loans

US Treasury - PPP Fact Sheet for Borrowers

Reach out to Brendan McAuliffe at or Mollie Snorsky at with questions or comments.

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