Paycheck Protection Program Disclosure
By participating in loan forgiveness under a SBA Paycheck Protection Program loan, the borrower could be forfeiting alternative tax benefits that were generally made available under the CARES Act, such as the employer’s retention tax credit and the employer’s ability to defer payment of the employer’s portion of social security taxes. In other words, a borrower that obtains forgiveness in the SBA Paycheck Protection loan program may become ineligible for the employer retention tax credit and the ability to defer the employer’s share of social security taxes.
Accordingly, the borrower may wish to discuss these matters with its tax advisor before obtaining a SBA Paycheck Protection Program loan. First Financial Bank does not provide tax advice to its customers.