New legislation aims to clarify the Small Business Administration’s Paycheck Protection Program, so small businesses can deduct expenses paid with a forgiven PPP loan from their taxes.
Oregon Democratic Senator Ron Wyden was part of a bipartisan group that introduced the bill today. A ranking member of the Senate Finance Committee, Wyden says the Small Business Expense Protection Act will help businesses feel confident using PPP funds to keep their workers employed.
“These are the ones that are in every nook and cranny in Oregon, and they just have a liquidity problem," Wyden tells KLCC. "They have trouble coming up with modest amounts of cash to keep the lights on, taverns are concerned about the beer getting outdated, and this kind of thing.”
Wyden says the Treasury Department’s current guidance barring deductions for expenses paid with PPP loans is a “gut punch” for struggling businesses. He says the new bill will fix this, and continue to help small businesses recover from the COVID-19 pandemic.
Copyright 2020, KLCC.