Alert: PPP Good-Faith Certification Review Guidance

Alert: PPP Good-Faith Certification Review Guidance

05/13/2020 Tags: Announcements, In the News, COVID-19, PPP

If you’ve submitted a Payroll Protection Program loan application for your business, you might recall the required good-faith certification. Essentially, you had to certify that your loan request was necessary to support your business’s ongoing operations.

The Small Business Administration and U.S. Department of the Treasury have determined a safe-harbor clause for certain applications. For a PPP loan that’s less than $2 million, the SBA will deem that the borrower has made the required good-faith certification concerning the necessity of the loan.

The SBA has determined that this safe harbor is appropriate because borrowers with loans less than $2 million are usually less likely to have access to enough cash compared to borrowers who apply for larger loans. Also, because of the large number of PPP loans and applications, this approach will allow the SBA to conserve resources to focus on reviewing larger loans.

Source: U.S. Department of Treasury Paycheck Protection Program Loans Frequently Asked Questions as of May 13, 2020 — Question #46

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Other Useful News

2017 Tax Reform: Last-minute Year-end Moves in Light of Tax Cuts and Jobs Act.
Community vision shapes new Boys and Girls Club facility in Gillette, WY.
Meet one of our newest team members, Kim Robinson.
GSA Releases Domestic Per Diem Rates for Fiscal Year 2018
Kayce Gerlach, CPA receives CEPA designation and joins International Community of Business Advisors, a part of the Exit Planning Institute.
CP Financial Services, LLP Wins Award
It is vitally important that business owners and executives understand what they need to do to be ACA compliant.
Read the essential facts and main points of the newly proposed American Health Care Act
Michael P. Dell, a local Rapid City CPA, has successfully completed the requirements to earn the designation of a Certified Tax Resolution Specialist (CTRS). This dignified certification is earned by good standing members of the American Society of Tax Problem Solvers (ASTPS).
Casey Peterson, LTD has been nominated for a 2017 Spirit of Volunteerism Award in the Corporate Humanitarian category. The Spirit of Volunteerism Awards luncheon honors outstanding volunteers in our community.
Read the full article on Casey Peterson celebrating 40 years with a slight name change and a look to the future.
The Healthcare Team at Casey Peterson, Ltd. are very proud of this joint project with South Dakota Association of Healthcare Organizations (SDAHO). This joint project benchmarks all nursing homes in South Dakota Nursing Homes against each other. This is a great resource in gauging the performance of your facility and to help identify potential opportunities for improved performance. For an analysis of your facility please contact Jackie Jermolenko or Mark Lyons, CPA today.
Tax Reform: New treatment of alimony under the new tax law.
Tax Reform: Whether home mortgage interest and home equity loan interest are deductible under the new law.
Tax Cuts and Jobs Act Puts $10,000 Aggregate Limit on State and Local Tax Deduction
2018 Tax Cuts and Jobs Act SEMINAR VIDEO
Commuting expenses to temporary job locations.
Employers can qualify for a tax credit known as the work opportunity tax credit that is worth as much as $2,400 for each eligible employee ($4,800, $5,600 and $9,600 for certain veterans and $9,000 for "long-term family assistance recipients"). The credit is generally limited to eligible employees who began work for the employer before Jan. 1, 2020. The credit, calculated as described below, is available on an elective basis for employers hiring individuals from one or more of nine targeted groups.
Is the IRS's Program for Misclassified Workers Right for Your Business? The IRS offers an employment tax settlement program called the Voluntary Classification Settlement Program. The program allows employers to reclassify workers they’ve previously treated as independent contractors.
Is your worker an independent contractor or employee?
Casey Peterson, Ltd. wins Top Wealth Advisory Firm award
Renting a Home to a Relative
Deducting the Costs of a Spouse on a Business Trip.
Taxation of Lottery Winnings and How Lottery Winnings are Taxed
Taxation of Social Security Benefits.
Spousal IRAs Increased tax benefits may be available to you under the rules for "spousal" individual retirement accounts (IRAs). Under these rules, the amount a married couple can contribute to an IRA for a nonworking spouse in 2018 is $5,500. The same limit applies for the working spouse.
Health Savings Accounts
The IRS will audit hundreds of thousands of individual tax returns this year. Although that represents only a small percentage of all returns filed, it is little consolation if your return is among those selected for audit. With proper preparation and planning, you should fare well.
Mid-year Review of Estimated Taxes
Withholding on Tips
Should I keep it on my menu?
Casey Peterson, Ltd. Adds Online Payment to Website
Employer-provided Education Assistance Exclusion
New Credit Legislation
Replacement Cost Method for Valuing Vehicle Parts inventory.
South Dakota increases its minimum wage.
Casey Peterson, Ltd. has been awarded the 2018 Top Wealth Advisory Firm from HK Financial Services (HKFS).
Meet one of our newest team members, Jessica Miller.
Meet one of our newest team members, Katelyn Woten.
Meet one of our newest team members, Rhye Leonard.
Meet one of our newest team members, Melissa Crouch.
Your health and safety, as well as that of our staff members, are always our priority. In light of the seriousness of the coronavirus, we’re temporarily closing our lobbies in Rapid City and Gillette to do our part to keep everyone safe. This closure is temporary, and we will reopen our lobbies as soon as it’s safe to do so. We’ll make sure to let you and the rest of the community know when our doors are back open.
We’ve created a resource page that we’ll be updating frequently. On it, you’ll find links to resources, alerts, and blogs. Feel free to bookmark the page so you can come back frequently to check for updates.
Through a couple pieces of recently enacted legislation, small businesses affected by COVID-19 now have access to more financial assistance. Below is a high-level overview of each type of aid, including Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) Loans. Refer to the comparison chart to see what options might work best for your small business and how you should apply.
The Small Business Administration released some guidance for the nearly $350 billion Paycheck Protection Program — or PPP. The program aims to assist small and mid-sized businesses deal with the financial fallout of the COVID-19 health crisis. The application process for small businesses — as well as nonprofits and sole proprietorships — starts Friday, April 3, 2020.
On April 10, 2020, the U.S. Department of Health and Human Services distributed the first $30 billion in funds allocated in the CARES Act as part of the Public Health and Social Services Emergency Fund. Any healthcare provider that received Medicare FFS reimbursements in 2019 received funds, which were based on a percentage of the providers’ 2019 reimbursement amount.
COVID-19 changed the world in a very short time. There are new and complicated tax and financial situations that can be hard to understand. To help you sort through some of the new rules and information, we created a financial solutions guide for individuals, which you can download for free.
The US House is discussing an additional relief package that includes funding to replenish the small business disaster loan programs. It's expected to pass Congress this week. Once passed, the Paycheck Protection Program and Economic Injury Disaster Loans through the Small Business Administration are expected to reopen reasonably quickly.
Recently, the American Institute of CPAs issued guidance — VS-100 Subsequent Events — that provides additional information about valuation reports in respect to the COVID-19 pandemic.
The government enacted more help for small businesses and farmers and ranchers on Friday, April 24, with an amendment to the original CARES Act.
The IRS issued Notice 2020-32 on April 30 to clarify details on how expenses incurred as part of a Paycheck Protection Program will be taxed. Under the CARES Act, the income from the loan forgiveness is excluded from taxable income. However, with the new notice from the IRS on April 30, related expenses from the loan forgiveness are not deductible. In other words, the debt forgiveness is not taxable, but the covered expenses incurred in the payroll, rent, mortgage interest, and utilities are not deductible. The IRS cites Section 265 for their authority.  We know that rules and guidance are changing moment by moment, and we’ll do our best to keep you updated quickly so you can make good, smart decisions for you and your business. If there’s anything we can do for you, please don’t hesitate to let us know.
Some recent CARES Act funding guidance has implications for government, nonprofit, and for-profit healthcare facilities. The U.S. Department of Health and Human Services released additional information about reporting requirements for the various funds. Healthcare providers that received more than $10,000 must file a report HHS detailing how the funds were used. Previous guidance indicated providers who received more than $150,000 in funding would be required to report how they spent the funds.
Some taxpayers have recently received a variety of notices from the IRS. The IRS issued a memo last week outlining their mission-critical operations and addressed an error in sending out certain notices without proper updates.
Small businesses, startups, and nonprofits in South Dakota have until Dec. 20 to apply for up to $500,000 in relief funds.
Hospitals and community-based facilities in South Dakota now have until Dec. 20 to apply for $150 million in grants through federal coronavirus relief funds.​
​If you’re a QuickBooks Desktop user, we’re offering a foundational course for beginners. Make plans to join us for this live, virtual two-day training Wednesday, Nov. 18, and Thursday, Nov. 19, from 9 a.m. to 11:30 a.m.


At Casey Peterson, LTD, we understand not everyone loves the complexities of accounting like we do. That's what sets us apart from the rest. Our CPAs, accountants, and financial advisors truly love numbers, solving problems, and creating business and financial strategies for our clients.

We’re looking for clients who believe in good customer service — clients who want CPAs, accountants, and financial advisors who are big-picture thinkers and ethical problem solvers. We’re looking for relationships, not transactions.

If you want the same, we should talk.

Contact Us