In order to qualify for PPP loan forgiveness, you must maintain your employee headcount. ![]() All mortgage, rent/lease and utility agreements must have been in place before Februin order to qualify as costs eligible for PPP loan forgiveness. Utilities include electricity, water, gas, sewage, telephone (including cell phones and landlines), Internet, and transportation costs. You can spend the other 40% on business mortgage interest, business rent and lease agreements, and business utilities. Payroll costs include salary, wages, vacation pay, parental/family or medical leave, sick leave, health benefits, and bonuses (with certain restrictions). This includes paying employees, or paying yourself if you are self employed. In order to qualify for PPP loan forgiveness, you must spend 60% of the loan on payroll costs. You have up to 10 months to apply for loan forgiveness after the covered period ends. Decemis the final date to pay eligible expenses. You should spend the funds during the covered period, and apply for loan forgiveness after the covered period. The covered period is the period of time starting with the date you received the funds.īusinesses that received their PPP loan before June 5 can use either an 8-week covered period or a 24-week covered period.īusinesses that received the loan after June 5 will use a covered period of 24 weeks, or until December 31, whichever comes first.īusinesses that received the loan after July 16 won’t get the full 24 weeks of the covered period, because December 31 is 24 weeks from July 16. The requirements for loan forgiveness are outlined below. More regulations are being proposed which could come into play later this year, but for now, we must follow the PPP Flexibility Act. The PPP Flexibility Act, which was signed into law on June 5, 2020, is the only legal guideline as of now. The requirements for PPP loan forgiveness are still changing, but the current requirements are outlined in the PPP Flexibility Act. Click here to read more about the PPP on the SBA’s website. The SBA will partially or fully forgive loans if the business uses the funds for qualified expenses. PPP loans are administered through The Small Business Administration (SBA). ![]() Loans issued after June 5 have a maturity of 5 years. Loans issued prior to June 5 have a maturity of 2 years. The goal is to protect workers’ income, protect business solvency, and help stabilize the economy.īusinesses may apply for loans in the amount of approximately 2.5 times their average monthly payroll costs. The PPP provides a framework for businesses to apply for low-interest loans, which are to be used specifically to continue paying employees, business rent or lease payments, mortgage interest, and business utilities during the Coronavirus pandemic. The Paycheck Protection Program (PPP) is a business loan program that was passed into law by Congress in March as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). You will need to have a completed Schedule C, even if you have not filed your 2019 taxes yet.īook a PPP Loan Forgiveness Consultation with BNC Tax We will help you navigate the rules and collect the documents you will need to apply for PPP loan forgiveness. If you need help applying for a PPP loan, please make an appointment on our Appointment Calendar. Many of our clients have received funds in just a few days. We have personally had the best luck for our clients with these two lenders. ![]() If you still want to apply for a loan, we recommend applying through PayPal or Kabbage immediately. NOTE: There is still time to apply for a PPP loan! The deadline to apply has been extended to August 8, 2020. Have you received a Paycheck Protection Program (PPP) loan, or are you planning to apply for one? Read on to learn more about PPP loans and how to apply for PPP loan forgiveness.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |