Recovery Resources: PPP advocacy, CARES expansion, Chesco economy, liability protections veto and managing through crises

Trade groups ask Congress to reverse IRS treatment of expenses paid by PPP loans
Several hundred trade associations have sent a letter to House and Senate leaders asking them to pass legislation to reverse the Internal Revenue Service’s treatment of expenses paid by funds borrowed under the Paycheck Protection Program, according to the Journal of Accountancy. Loans made under the PPP can be forgiven if they are used for certain business expenses, but the IRS has ruled that businesses can’t deduct expenses that otherwise would be deductible if paying the expenses results in forgiveness of a PPP loan. That ruling, the groups said in their letter, would “transform tax-free loan forgiveness into taxable income, raising the specter of a surprise tax increase of up to 37 percent on small businesses when they file their taxes for 2020.”

Chesco updates Restore Chester County website
The Chester County commissioners and members of the Chester County COVID-19 Business Task Force said Friday they have updated the Restore Chester County website, which was launched in May to support businesses, organizations and residents effected by the novel coronavirus pandemic. Visitors to the website now will be presented with overall “Action Steps” with links to the country’s current economic conditions, business practices, and industry support. From there, they can select one of 21 industry sectors to see the action steps that members of the sector are taking to deal with the pandemic. Businesses and organizations that would like to share innovative ways they have navigated the pandemic are invited to submit their stories by emailing [email protected]. Chester County businesses and residents are also encouraged to share their successful experiences, tips and insights on social media using the hashtag #RestoreChesCo.

Montgomery County Foundation to administer Workforce Development Fund
The Montgomery County Foundation will administer a fund that will make grants to nonprofits in Berks, Bucks, Chester, Delaware and Montgomery counties for workforce development. The Workforce Development Fund will back projects that feature collaboration, best practices and active engagement with local employers. The foundation will be accepting grant applications from 1 p.m., Dec. 7 through 4 p.m., Jan. 20, 2021.

E-book offers overview of ways to manage through crises
Supporting Strategies has published a seven-page e-book called Managing Your Business During a Crisis. Main Line Chamber of Commerce member Andrea Sanders, the managing director of the Philadelphia office of the outsourced bookkeeping and controller services firm, is distributing the e-book. It provides tips to help businesses not only survive disruptive events like the pandemic but emerge from them stronger than ever.

Deal on federal relief package close but differences remain
Federal lawmakers appeared Friday to be closer than ever to reaching a deal on a coronavirus relief package. House Speaker Nancy Pelosi said “there is momentum” towards a deal, according to a CNBC story that also reported that Senate Majority Leader Mitch McConnell said after a Thursday meeting with Pelosi that he and she were “interested in getting an outcome … on a coronavirus package.” Democrats, who hold the House and can block legislation in the Senate, have backed a framework for a $908 billion relief plan unveiled by members of both chambers as a basis for talks with McConnell. The leader of the GOP-controlled Senate wants to pass a smaller $500 billion plan. In addition to differing over the size of the plan, Democrats and Republicans disagree on other potential components of it including unemployment insurance, support for state and local governments, education funding and liability protections for businesses.

State Chamber laments Wolf’s veto of bill with COVID-19 liability protection for businesses
COVID-19 liability protection for businesses remains a hot button issue in Pennsylvania after Gov. Tom Wolf vetoed a bill that would have expanded it. Wolf said the bill would have provided “broad, overreaching immunity from civil liability.” “Businesses across the Commonwealth struggling to simply survive were dealt yet another blow today as Governor Wolf vetoed critical liability protections; and instead backed opportunistic trial lawyers anxious to profit from” the pandemic, Pennsylvania Chamber of Business and Industry President and CEO Gene Barr said in a statement. Insurance Agents & Brokers President and CEO Jason Ernest told the Insurance Journal he believes Pennsylvania “lawmakers and stakeholders will continue to work on passing similar legislation.” Law firms Hunton Andrews Kurth and Fisher Phillips have web pages that track the number of COVID-related lawsuits nationwide.

Federal CARES act includes changes in charitable deduction rules
Nonprofit organizations are pushing the idea that donors can reduce their tax impact by making donations prior to year end. Changes in tax rules tied to the CARES act expand deductibility of donations to qualifying nonprofit organizations so givers can reduce taxes even without itemization. The rules are outlined on an IRS page.