- How do I make sure my PPP loan is forgiven?
- What are the new rules for PPP loan forgiveness?
- What is the covered period for PPP?
- What happens if I don’t use all of my PPP loan?
- Is SBA forgiving PPP loans?
- How long do I have to spend PPP funds?
- What happens if PPP not forgiven?
- What expenses can PPP loans pay?
- What qualifies for PPP forgiveness?
- What documents are needed for PPP loan forgiveness?
- Who is not eligible for a PPP loan?
- Has anyone received PPP forgiveness?
- Is Garbage considered a utility for PPP?
- When should I apply for PPP forgiveness?
- Do PPP loans have to be repaid?
- Can bonuses be included in PPP forgiveness?
- Does PPP count as income?
- Can PPP loan be used for utilities?
- What is the deadline for PPP loan forgiveness?
- How do I calculate my PPP loan?
- How long does SBA have to approve PPP loan forgiveness?
How do I make sure my PPP loan is forgiven?
Use the following tips on how to make sure your PPP loan is forgiven to get started:Use it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness..
What are the new rules for PPP loan forgiveness?
To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period between eight or 24 weeks.
What is the covered period for PPP?
NOTE: The Covered Period for PPP loans is the 24-week period immediately following disbursement of the loan or a period ending on December 31, 2020, whichever is shorter. If you received your loan prior to June 5, 2020, you may choose the 8-week period following disbursement of your loan as your Covered Period.
What happens if I don’t use all of my PPP loan?
Your loan forgiveness can be reduced if you don’t spend your loan exactly as described above, but you will still receive some level of forgiveness if you use your loan on eligible costs. Spend all of your loan money on rent? That’s fine, but at most you’ll receive 25% loan forgiveness.
Is SBA forgiving PPP loans?
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. PPP loans have an interest rate of 1%. … Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender.
How long do I have to spend PPP funds?
Here are nine criteria for spending the money: Borrowers have 24 weeks after they receive their loans to spend the loan proceeds, until December 31 at the latest. (Previously, they had only eight weeks.) To qualify for full forgiveness, at least 60% (down from 75%) of loan proceeds have to go toward payroll.
What happens if PPP not forgiven?
What if my loan isn’t forgiven in full? You will have to repay any amount of the PPP loan that is not forgiven at a 1% interest over a 5 year term. Loan payments will be deferred for six months but will start incurring interest immediately. PPP loans have no fees and no prepayment penalties.
What expenses can PPP loans pay?
The loan amount is based on your average monthly payroll cost for 2019. You can receive 2.5 times that amount, to help cover eight weeks of payroll. The funds from the PPP can be used for the following purposes: Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits.
What qualifies for PPP forgiveness?
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.
What documents are needed for PPP loan forgiveness?
For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).
Who is not eligible for a PPP loan?
Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except as Eligible Passive Companies under 13 CFR § 120.111) are not eligible.
Has anyone received PPP forgiveness?
The Treasury Department and Small Business Administration have not yet forgiven any of the 5.2 million emergency coronavirus loans issued to small businesses and need to do more to combat fraud, government watchdogs told Congress on Thursday. Support our journalism. Subscribe today.
Is Garbage considered a utility for PPP?
Strangely, while garbage removal is not considered an eligible utility expense, the SBA will allow the inclusion of transportation expenses, such as gas and mileage reimbursement in the non-payroll costs.
When should I apply for PPP forgiveness?
You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.
Do PPP loans have to be repaid?
Yes. PPP loans (the full principal amount and any accrued interest) may be forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan. … Businesses have up to 24 weeks from the date you received the loan to spend the funds and be eligible for loan forgiveness.
Can bonuses be included in PPP forgiveness?
The IFR confirmed that PPP funds may be used to pay employee bonuses and hazard pay during the Covered (or Alternative Covered) Period and those amounts are eligible for forgiveness.
Does PPP count as income?
While a loan does not generate taxable income, a forgiven loan generally does. Congress addressed, to a degree, that issue by specifically stating in the CARES Act that forgiven PPP loans are not includable in taxable income.
Can PPP loan be used for utilities?
What else can PPP funds be used for during the covered period and be forgiven? No more than 40% of PPP loan proceeds may be used for “covered” mortgage interest, utilities, rent and certain other interest payments that were established (contract in place) as of February 15, 2020.
What is the deadline for PPP loan forgiveness?
The SBA has not set a deadline to apply for forgiveness, but you have 10 months after the end of your covered period before you’ll be required to start making monthly payments.
How do I calculate my PPP loan?
How PPP loans are calculated. PPP loans are calculated using the average monthly cost of the salaries of you and your employees. But if you’re a sole proprietor, your PPP loan will be calculated based on your business’ net profit. Your salary as an owner will be defined through the way your business is taxed.
How long does SBA have to approve PPP loan forgiveness?
90 days“We have ones that just went in a couple days ago that just came back and others at 90 days that have not,” he said, referring to the SBA’s 90-day statutory deadline under which it must review and approve PPP loan forgiveness determinations submitted by lenders.