close
Share with your friends

KPMG report: Lending programs under CARES Act, including interactions with tax provisions

KPMG report: Lending programs under CARES Act

The “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136) signed into law on March 27, 2020—in addition to its numerous tax provisions—establishes two important lending programs:

1000

Related content

  • The Small Business Administration-administered “paycheck protection program” (PPP)
  • The Treasury Department’s economic stabilization fund

Together, these two programs provide nearly $900 billion to support lending to small and large businesses and to nonprofit organizations.

The PPP is available to tax-exempt organizations described in section 501(c)(3) and veterans organizations described in section 501(c)(19) that have no more than 500 employees. In addition, under a program to be established by the Federal Reserve for medium-sized businesses, Treasury’s economic stabilization fund will be used to support low-interest loans for organizations with between 500 and 10,000 employees, including nonprofits. These programs are intended to support employee retention and compensation. Read a KPMG report that outlines the requirements for the PPP, the economic stabilization fund, and the interaction of these programs with the tax provisions of the CARES Act.

Applications to obtain a PPP loan may be filed beginning tomorrow, April 3, 2020.


For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal