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- When is the forgiveness application deadline?
- FAQs for Paycheck Protection Program (PPP)
- Paycheck Protection Program Second Draw: what to know
- If my loan was an EIDL grant or Targeted EIDL advance, do I still need to demonstrate a 25% reduction in gross receipts?
- You met the 60% rule
- Prepare and submit your PPP loan forgiveness application.
The Interim Final Rule on Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act is a great resource for details on eligible costs for forgiveness. Borrowers who received a Targeted EIDL Advance or Supplemental Targeted Advance do not need to repay a portion of their loan (up to $15,000). These advances are treated as grants, so no forgiveness application is required.
Though you can patch up any small error you let slip through, it’s best to get your application done correctly the first time. For that, you’ll at least want a tax professional to look over your application before submitting it. If you want https://kelleysbookkeeping.com/bookkeeping-and-accounting-services-for-truckers/ to appeal your lender’s PPP forgiveness decision, talk to a CPA for guidance. Within 60 days, your lender will decide on the forgiveness amount. Whatever the decision, it goes directly to the SBA, requiring no action on your part.
When is the forgiveness application deadline?
If your loan, or a portion of your loan, isn’t forgiven, you will have to make a plan with your lender to repay the loan with 1% interest. Although you have until the maturity date of the loan to apply for loan forgiveness, we encourage you to complete your PPP forgiveness application as soon as you are able, as principal and interest will become due when your deferral period ends. If you submit your loan forgiveness application within 10 months of the end of the covered period, you will not have to make any payments of principal or interest on your loan before the date on which the SBA makes a final decision on the loan forgiveness amount. If I elect to use the SBA’s new loan forgiveness application (Form 3508S), will I be required to submit documentation?
Is PPP loan forgiveness recorded as income?
Forgiveness of PPP loan proceeds should be recorded as income from continuing operations, as a separate line item. of loan forgiveness from the U.S. government is received.
This type of error does not generally constitute reasonable cause for penalties that can be abated due to reasonable cause. AB 80 and SB 113 generally prohibits “ineligible entities” from deducting expenses paid with loans forgiven under the Original Paycheck Protection Program Loans, QuickBooks vs Quicken: Knowing the Difference Subsequent Paycheck Protection Program Loans, and U.S. Taxpayers who meet the documentation requirements at the federal level will be considered as having met them for California purposes as well. California is not adding additional supporting documentation requirements.
FAQs for Paycheck Protection Program (PPP)
Those applying for other small business loans might not have the luxury of time. If you need to clear the PPP debt from your books, go ahead and apply for forgiveness. You could be waiting weeks before lenders update loan forgiveness procedures. Wherever you got the PPP loan — either a traditional bank, payroll provider, or online service like PayPal — you need to return there to apply for forgiveness. If you still have a balance on your PPP loan, you’ll start making payments starting 10 months after the loan period.
