A Note About Your PPP Forgiveness

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new PPP rules

If your Payroll Protection Program loan was less than $150,000 you may want to hold off on applying for forgiveness.

As of now, all those who received the loan, including many car audio dealers, can apply for “forgiveness” by submitting payroll documents and forms that show at least 60 percent of the money went to keeping employees on payroll.

But, proposals in Congress presently call for complete PPP forgiveness without the need for extensive forms and documents for loans under $150,000. Most of the PPP loans would qualify therefore for automatic forgiveness, according to reports.

Additionally, borrowers of $150,000 to $2 million would no longer need to submit payroll documents, but only certify that the documents exist, and retain them for three years, according to a Senate bill.

CT local news channel 12 this morning, suggested small businesses wait at least two weeks, for more information to come from Congress.

Newsday reports that only seven percent of borrowers have submitted forgiveness applications for their PPP loans to date, according to the National Federation of Independent Business.

Currently, PPP recipients must submit a forgiveness application within 10 months of using up the loan funds and by December 31. If the loan is not forgiven, it is subject to one percent interest over 5 years.

According to Newsday, if Congress makes no changes to the PPP, borrowers will use one of three forgiveness applications:

* SBA Form 3508, which is five pages and may be found at nwsdy.li/3508;

* SBA Form 3508EZ, which is three pages and may be found at nwsdy.li/3508EZ  or

* an equivalent application from your bank

Source: Newsday

 

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