Hey everyone as you may be aware a new act passed related to the Payroll Protection loan forgiveness and we wanted to get some information out to you on what changed and what to look out for. The new form can be found here:
Revised PPP Loan Forgiveness Application
If you qualify for the EZ form it can be found here:
PPP Loan Forgiveness Application Form Instructions
Remember to read the instructions and verify if you qualify for the EZ form before submitting.
Also, we sure enjoy Tony Nitti’s articles here at SBW; as this new guidance is coming out we think he breaks it down rather well. Here is his article related to the new act for more information:
Read the Not Quite Definitive Guide to Paycheck Protection Program Loan Forgiveness
There are several things to consider before moving forward with the application we want to caution you on:
- What time period you qualify for (8 weeks versus 24) and which you should use based on your particular situation?
- Whether or not you qualify for the EZ form?
- If you had a reduction in employees or wages, what does the schedule look like for reduction of the forgiveness amount? And is that amount calculated correctly?
- Should you use an alternate payroll date?
- Do you have the correct expenses in the appropriate place on the form?
We want to make sure you are getting the application submitted correctly the first time so you are most likely to get all or a significant portion of the loan forgiven. Please let us know if you need help.
REMINDER: Any Economic Injury Disaster Loan (EIDL) advance you received will be considered and removed from the forgiveness amount eventually calculated. Several of these were at $1,000 per employee (or 10,000 per business in the beginning) so if you received the EIDL advance and you calculate PPP at full forgiveness you still could end up with a PPP loan based on that EIDL advance.
We are not sure when the banks will begin accepting the loan forgiveness application. It is our understanding they still need more guidance.
We look forward to working with you and doing what we can to help in these unprecedented times.
Have a great day!