IRS Publishes Additional Guidance on Information Reporting for SBA Subsidies

The Internal Revenue Service this week instructed lenders that had, in accordance with previous Small Business Administration guidance, filed or furnished to borrowers form 1099-MISC for subsidies paid by the SBA to file and furnish corrected forms that exclude these subsidized loan payments.

This guidance is consistent with an IRS notice issued late last month, which implemented provisions from the latest COVID-19 relief law that made subsidies for SBA 7(a) loans and certain other relief programs tax-exempt.