NMHC and NAA on August 4 signed two letters regarding the Paycheck Protection Program (PPP) enacted as part of the CARES Act to provide a financial lifeline to small businesses, including multifamily property management firms.
The first letter signed by over 180 organizations requests that the next round of COVID-19 relief legislation enable taxpayers with forgiven PPP loans to fully deduct expenses paid with the proceeds. While the CARES Act excluded forgiven loans from income, the Internal Revenue Service in Notice 2020-32 determined that taxpayers could not deduct expenses paid from forgiven loans. With multifamily firms engaged in property management eligible for PPP loans, it is critical that Congress overturn the IRS’ ruling.
In the second letter, the multifamily industry joined other organizations to request that legislation authorizing a second PPP loan make it easier for eligible small businesses to qualify. Under the Continuing Small Business Recovery and Paycheck Protection Program Act, small businesses would have to experience a 50 percent gross revenue drop to receive a second loan. The letter asks that the threshold be reduced to 20 percent.
Finally, the Small Business Administration and Treasury Department have issued FAQs regarding the forgiveness of PPP loans.
For more updates on NMHC advocacy work related to the PPP, please visit the NMHC COVID advocacy webpage.
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