SBA Simplifies Forgiveness Process for Some PPP Loans

On October 19, 2020, the U.S. Small Business Administration (SBA) and the Treasury Department issued interim final rules (IFR) revising the process for some businesses to seek Paycheck Protection Program (PPP) loan forgiveness and lender evaluation of loan forgiveness applications submitted in accordance with the new process. These IFR offer additional guidance to further simplify …

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Commissioner Spotlight: South Carolina Director Ray Farmer

In the latest entry in our Commissioner Spotlight series, we are focusing on the head of the South Carolina Department of Insurance (SCDOI), Director Ray Farmer. Dir. Farmer served as vice president of the American Insurance Association (AIA, now APCIA), a trade association for insurance carriers. He spent the early part of his regulatory career as …

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Loan Forgiveness and the Paycheck Protection Program

Earlier this year, the U.S. Small Business Administration (SBA) issued an interim final rule (IFR) regarding the process for appealing SBA loan decisions under the Paycheck Protection Program (PPP). This IFR sets forth the process for a PPP borrower to appeal certain SBA loan review decisions made in connection with a PPP loan to the …

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NAIC Makes Progress on Rebating Revisions

State interpretation and application of anti-rebating laws varies, and, about a year ago, those variations prompted the National Association of Insurance Commissioners’ (NAIC) Innovation and Technology Task Force, led by Commissioner Jon Godfread (ND), to further investigate the section of the Unfair Trade Practices Act (Model #880) that addresses rebating. Prompted by that investigation, the Task Force tasked a …

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Paycheck Protection Program Clarifications Continue

In July, PIA National submitted comments on two different regulatory proposals promulgated by the Small Business Administration (SBA) concerning the implementation of the Paycheck Protection Program (PPP). Since then, regulatory activity has continued apace in formal and informal ways. The latest entry in the growing literature on How to Interpret the PPP is an August …

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Paycheck Protection Program: Legislative Update (Part 2 of 2)

Earlier this month, Congress passed and the president signed H.R. 7010, the Paycheck Protection Program Flexibility Act, expanding the “covered period” (see yesterday’s post for details) from eight to 24 weeks. In other words, thanks to the modifications in H.R. 7010, employers now have an extra 16 weeks in which to spend their PPP loan …

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Paycheck Protection Program: Regulatory Update (Part 1 of 2)

The Paycheck Protection Program (PPP), a new loan program created within the Treasury Department’s Small Business Administration (SBA) as part of the CARES Act, was designed to provide an avenue of potential loan forgiveness for those businesses whose borrowing and spending met certain requirements. Today in Part 1, we’ll go over the main points of …

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PIA Comments on Paycheck Protection Program Rule

On May 15, PIA National submitted a response to the interim final rule promulgated by the U.S. Small Business Administration (SBA) regarding its implementation of the Paycheck Protection Program (PPP). The PPP was created by H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136). In the CARES Act, Congress authorized …

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IRS Says Small Business Loans Are Taxable Income

Last week, the Internal Revenue Service (IRS) issued Notice 2020-32, which announced that business expenses that are normally tax deductible but are expected to be forgiven as part of loans provided in accordance with the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, …

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