Quick Answer: What Are The New Rules For PPP Loan Forgiveness?

What is PPP loan forgiveness?

Loan Forgiveness.

For Borrowers.

Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement..

Do I have to wait 24 weeks to apply for PPP loan forgiveness?

This is welcome news for many who were going to spend their entire Paycheck Protection Program (“PPP”) loan after the eight-week period, but well before the end of the 24-week period. A company that spent all of its PPP monies by week 10 will not have to wait another 14 weeks to apply for forgiveness.

Will my PPP loan be forgiven?

Forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 net profit to replace pay. If you didn’t have any other payroll expenses factoring into your PPP loan amount, this means that your entire PPP loan could be forgiven for the 24-week period.

What are the new rules for the PPP loan?

In general, PPP loans are forgivable if your business used at least 60% of the loan for eligible payroll costs over a span of 24 weeks. Non-payroll costs, including mortgage interest, business rent and utilities are also eligible for forgiveness, but the new rules tweak certain eligibility requirements.

What documents do I need 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).

What is the deadline for PPP loan forgiveness?

Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.

How do I get my PPP loan forgiveness?

To apply for PPP loan forgiveness, use the SBA’s Loan Forgiveness Application form, Form 3508. You might be able to use Form 3508EZ or Form 3508S if you meet the eligibility guidelines. Then, submit it to your lender.

When should I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.