Paycheck Protection Program Loan Forgiveness Application
May, 18th 2020
The Small Business Administration has issued the form and instructions for applying for forgiveness under the Paycheck Protection Program. The new guidelines have added more flexibility in the compliance. The new guidelines are beneficial to the small business owner taxpayer. Some of the benefits are:
Options for business owners to calculate payroll costs using an “alternative payroll covered period” that aligns with regular payroll cycles
Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
Instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
Implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
Originally, the eight-week coverage period started on the first day of funds deposited into taxpayers bank account. The guidance released Friday will help small businesses seek forgiveness at the conclusion of the eight-week covered period by providing flexibility on the covered period.
Paycheck Protection Program Loan Forgiveness Application and Data (here)
We are here to help! Contact our office at 562-495-3331 if you need any assistance navigating the application process.
Stay Safe and Healthy.
Holmes & Associates, CPAs.
Disclaimer: The information contained in this newsletter is intended solely for general educational purposes. It is not intended for the purpose of providing specific legal, accounting, or other professional advice to any particular recipient or with respect to any particular jurisdiction. The Firm (1) makes no representations, warranties, or guarantees as to its technical accuracy or compliance with any law (federal, state, or local); and, (2) assumes no responsibility to any recipient of this document to correct or update its contents for any reason, including changes in any laws. Before using any information contain herein, you should formally retain tax professional knowledgeable to your financial situation.