Morgan Lewis partners Andrew Budreika and Jennifer Breen spoke with Accounting Today about the CARES Act’s Paycheck Protection Program (PPP). In the article, they discussed key considerations for PPP borrowers eligible for loan forgiveness.
“In the event the loan is forgiven, the CARES Act specifies that it would not constitute cancellation of indebtedness income,” said Jennifer. Andrew added, “It was signed ‘as is’ for most people so they could get funds and needed relief quickly. Now the focus has turned to forgiveness. It’s important to keep really good records to show they used the money the way they are supposed to use it.”