What Is The Deadline For PPP Forgiveness?

What are the new rules for PPP loan forgiveness?

The PPP allows loan forgiveness for payroll costs — including salary, wages, and tips — for up to $100,000 annualized per employee, or $15,385 per individual over the eight-week period.

The new interim final rule establishes the 24-week maximum for full loan forgiveness at $46,154 per individual..

What documents are needed for PPP forgiveness?

Recordkeeping and required documents for forgiveness Payroll reports from your payroll provider (Learn more about how payroll providers are supplying PPP specific reports) Payroll tax filings (Form 941) Income, payroll, and unemployment insurance filings from your state.

Are PPP loans under $150000 automatically forgiven?

Paycheck Protection Program Updates About 44% of borrowers say they would apply for a second PPP loan if eligible. That’s not surprising. … The bipartisan bill holds the intention of automatically forgiving loans of less than $150,000. It will reduce the requirement for burdensome paperwork down to a one-page form.

Has PPP program been extended?

Y.), and Senators Jeanne Shaheen (D-N. H), Jacky Rosen (D-Nev.), and Susan Collins (R-Maine) successfully passed legislation to extend the U.S. Small Business Administration’s (SBA’s) authority to approve Paycheck Protection Program (PPP) loans through August 8, 2020.

Can you submit PPP loan forgiveness before 24 weeks?

Yes. A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan, including before the end of the covered period (if the borrower has used all the loan proceeds for which the borrower is requesting forgiveness).

What are the new PPP rules?

Highlights. A new Interim Final Rule (IFR) from the U.S. Small Business Administration (SBA) provides that certain owner-employees with less than a 5 percent ownership stake are not subject to the owner-employee compensation rule of the Paycheck Protection Program (PPP) limiting loan forgiveness for owner compensation.

Did PPP loan forgiveness get extended?

The changes will simplify the qualification for loan forgiveness for many employers by allowing expenses to be incurred over a 24-week period instead of an eight-week period and extending the rehire date from June 30, 2020, to December 31, 2020. …

How do you maximize PPP loan forgiveness?

7 ways small businesses can maximize PPP loan forgivenessDon’t short yourself on allowable payroll costs. … But don’t go beyond PPP payroll boundaries. … Maintain your staffing. … Avoid drastic pay cuts. … Focus most of your PPP loan on payroll. … Stay within allowable expenses for the rest of your PPP loan amount. … If necessary, forge ahead without loan forgiveness.

Do I have to rehire the same employees PPP?

From the guidance released so far, it appears you don’t have to rehire the same employees. The SBA’s forgiveness application does not make a distinction between new and existing employees.

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).

What is considered Utilities for PPP forgiveness?

Traditionally, “utilities” normally means electricity, water, gas, and sewage only. But as you can see, the PPP adds the additional categories of telephone, internet, and transportation costs.

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.

How can I get my PPP 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.

Will PPP loans be automatically forgiven?

Under U.S. Senate Bill 4321, the “Continuing Small Business Recovery and Paycheck Protection Program Act, all PPP borrowers receiving $150,000 or less shall automatically have their loan forgiven if the debtee “signs and submits to the lender an attestation that the eligible recipient made a good faith effort to comply …

Has anyone got PPP forgiveness?

Agency has yet to forgive any Paycheck Protection Program loans and has been slow to prevent theft, watchdogs tell Congress. … SBA announced last week that it had received only 96,000 loan applications — less than 2 percent of the total number of loans — and has not processed any applications so far.

What happens if you don’t use all the PPP loans?

To be eligible for full loan forgiveness, you must use at least 60% of PPP funds to cover qualifying payroll costs and the remainder may be used for qualifying non-payroll costs. If you do not use PPP for these purposes, your PPP loan will not be forgiven and you will be required to pay back the loan.

What expenses are forgivable PPP?

Eligible Forgivable Non-Payroll Costs include the following: 1) Mortgage Interest, 2) Rent on Lease, and 3) Utilities. 16) What is included in “utility payments”? Utility Payments include the following: 1) water & sewer, 2) electricity, 3) telephone (including cell phone), 4) internet, 5) gas, and 6) transportation.

What can be paid with PPP funds?

Under the CARES Act, PPP loan proceeds can lawfully be used for the various purposes of a normal SBA 7(a) loan, such as to provide working capital as well as to cover (1) Payroll Costs; (2) costs related to continuation of group health care benefits during periods of paid sick, medical, or family leave, as well as …