In order to qualify for a business tax credit, the borrower must make a loan with the bank and make repayment on that loan for a year after the loan is made. The Consolidated Appropriations Act of 2017 amended the criteria for qualifying loans for this tax credit. To be eligible for a PPP loan, the business must have been an original creditor to the CARES Act, meaning that it received at least $349 billion. Additionally, the lender to the borrower must have made two or more loans under the PPP loan program. Lastly, the borrower had to make a qualified Employee Retention Credit PPP loan on which the bank made a secured interest in property, or a non-refundable loan where the bank gets a lien on equipment. If the borrower fails to repay the loan, the lender is entitled to a refund of 80 percent of any losses that they suffered. In a new provision, if a borrower who originally qualified for a business tax credit and the loan was restructured to make it ineligible for a refund of the credit, they will still be eligible for this new provision. Businesses must repay a loan under the new provision within 10 years from when the loan was first made.
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