"This means the loan forgiveness is actually taxable and this is goes against the intent of Congress."

No, it's the opposite of that statement. Because the funds are not going to be reported as income, you do not Also get to write off the specific expenses paid for by these funds. It would be Double Dipping to get these costs covered by the program and also get to write off these as expenses, in other words.

So, it will be a Wash.

1. Report the income and write down the expense = net 0.

or;

2. Don't report the inflow as income and don't report the outflow as expense = net 0.

Same difference.