NFIB Applauds State Senate Vote to Not Tax Small Businesses on Paycheck Protection Program Loans
As many try to recover financially, surprise taxes could endanger small business survival

TRENTON (Jan 28, 2021) – Today, the New Jersey Senate voted to align its tax code so that it matches the federal code when it comes to tax policy on Paycheck Protection Program loans that were issued to keep small businesses afloat during the pandemic.

Currently, many small businesses including restaurants, gyms, personal services, and those who handle events are having great difficulty recovering from ongoing losses that have extended for nearly a year during continuing government restrictions.

“When small business owners took these loans last spring to survive when they were ordered to shut down, and the owners agreed to keep their employees on the job and off of unemployment to turn them into grants, they never imagined they would be taxed by the government.” said NFIB’s New Jersey State Director Eileen Kean.

“We are so grateful to the Senators for going along with Congress, and not imposing taxes on the forgivable funds and allowing loan-related expenses to be deducted,” added Kean.” We hope the Assembly will support New Jersey’s small businesses by doing the same.”

In New Jersey last year 157,405 businesses received PPP loans, but it is important to note that 135,467 of them, the vast majority, were loans of less than $150 thousand.

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For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.