SUMMER 2021

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74 THE DISTRIBUTOR’S LINK Roman Basi Roman Basi is the President of The Center for Financial, Legal & Tax Planning, Inc. Roman graduated from Milliken University obtaining a Bachelor’s of Science Degree with a minor in Psychology. He earned an MBA from Southern Illinois University with an emphasis in Accounting and recevied his JD degree from Southern Illinois University. Roman is a licensed CPA as well as being a licensed attorney in Illinois, Missouri and Florida and is in high demand for his expertise in financial, legal and tax matters. His areas of expertise include mergers and acquisitions, contracts, real estate law, tax and estate planning. TOPICS TO CONSIDER REGARDING SECOND DRAW OF PPP FUNDING Business owners, CPAs, loan officers, and if applicable, business brokers, should use a variety of tactics simultaneously as businesses pursue economic support in the form of a second draw of PPP funding. Per advice from the AICPA, the American Institute of Certified Public Accountants, borrowers may need to act quickly and diligently to fill out their forms for a second round of PPP funding. Some lenders are requiring PPP borrowers to apply for forgiveness on their first-draw PPP loan before they file to seek a second-draw PPP loan. However, according to the SBA and Treasury, this is not a requirement. Possible borrowers may want to consider other lenders to process the second-draw loan application without the business having to file for forgiveness on their first PPP loan. Compiling the relevant data that lenders seek is a critical step. Information such as average monthly payroll amounts and (for second-draw PPP borrowers) quarterly revenue comparisons are necessary. Supporting documentation for the average monthly payroll calculation used to calculate the maximum loan amount can be obtained from clients to support those amounts they CONTRIBUTOR ARTICLE come up with and will be helpful in the future, as it drove the amount of the PPP funds the borrower received. Borrowers also need to be aware of updates on PPP forgiveness and differences between first-draw and second-draw loans. Potential borrowers should understand that second-draw applications require borrowers to prove they have experienced at least a 25% reduction in gross receipts as a result of the pandemic by comparing one quarter of 2020 to the same quarter in 2019. New guidance makes certain covered operations expenditures, covered property damage costs, covered supplier costs, and the covered worker protection expenditures eligible for PPP forgiveness. As of January 20, 2021, the SBA and Treasury released an updated and simplified version of the PPP Forgiveness application. The form is called PPP Loan Forgiveness Application Form 3508S. It can be used by borrowers that received a PPP loan of 0,000 or less. Borrowers are not required to submit any supporting documentation with the application but are mandated to maintain payroll, nonpayroll, and other documents that could be requested during an SBA loan review or audit. CONTINUED ON PAGE 142

IFE Group is proud to announce the assignment of Rick Rudolph Associates to promote IFE products in New England. Rick Rudolph Associates is a Manufacturer’s Representative Agency representing the highest quality manufacturers, master distributors, and importers of the finest products and services to New England’s distributors. Rick Rudolph Associates, based in Melrose, MA, has a team of experts that can provide the resources and solutions you need to get the job done right. To speak with an experienced member of their staff, phone them at 617-240-5326, email rick@ rickrudolphassociates.com, or send an email to morgan@ rickrudolphassociates.com. With IFE you have access to a large range of connecting, clamping and protection products, and the support to help you find the best solution for your application – and your budget. Our customer support includes in-house testing facilities and global manufacturing in strategic locations. With the number of suppliers shrinking, if you are looking for an experienced partner… a company that is fast and flexible. Consider IFE. For more information, contact IFE Americas USA at 7000 Kensington Road, Brighton, MI 48116. Tel: 248- 446 1900, Email: info@ifegroup.com or visit them online at www.ife-group.com. THE DISTRIBUTOR’S LINK 75