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The San Antonio Chamber of Commerce has mailed a letter to members of the Bexar County Congress in an effort to make sure that loan recipients of the Paycheck Protection Program (PPP) are offered all the benefits proposed in the CARES Act.
The chamber has recognized the devastating cynical impact of COVID-19 on the state's economy. The terms of the PPP state that if small businesses use a loan from the federal government to pay their workers and to cover some types of expenses, the loan will be forgiven.
Incorporated in the CARES Act is a plan stating that any portion of a PPP loan that qualifies for loan forgiveness “shall be excluded from gross income” and can be used for tax purposes.
However, the Internal Revenue Service (IRS) published in Notice 2020-32, which stipulated that “no deduction is allowed under the Internal Revenue Code…if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the [CARES Act].”
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