Ready to Use PPP Funds to Pay Big Bonuses? Read This First!

American City Business Journal sits down with Weaver’s Sonia Desai, Managing Director, and Sean Muller, National Practice Leader, to get clarity on the SBAs loan forgiveness parameters.  

• The Small Business Administration’s fresh loan forgiveness guidance on its Paycheck Protection Program has cleared up one question regarding using the funds to pay bonuses or extra compensation: It’s not for the owners.

  “The PPP loan forgiveness application does not limit bonuses or extra pay for employees,” said Sonia Desai, a director in forensics and litigation services in the Austin office of tax and advisory firm Weaver and Tidwell LLP. But that doesn’t mean employers shouldn’t pay close attention to those bonus amounts — or hand them out willy-nilly, per the new SBA instructions.

Read the full interview with American City Business Journals here.

© 2020