By: Mary Jones
How Can I Get My PPP Loan Forgiven?
Small business owners were eligible for two rounds—or "draws"—of PPP loans. If you received more than one draw, you must submit a separate application for each loan you received.
Where Do You Apply for PPP Loan Forgiveness?
if your lender is on it, use the SBA direct forgiveness portal to submit your information. SBA form 3508S is the template for your direct forgiveness application.
Apply for PPP Loan Forgiveness
This period typically lasts eight to 24 weeks after your loan is funded. If you submit an application within this period, your loan payments will be deferred while your application is reviewed.
Documents Are Needed for PPP Forgiveness
SBA Form 3508: This is the standard PPP loan forgiveness application. SBA Form 3508EZ: This simplified version of the standard form requires less documentation. To choose SBA Form 3508EZ,
Where You Can Get Help With PPP Forgiveness
you may not need help completing your PPP loan forgiveness package. But if the application process sounds daunting to you, a good accountant can help you do complex calculation
Get Forgiveness or Get Ready to Pay
Any loan balance that is not forgiven will be treated as a regular loan. You'll pay 1% interest and need to repay your debt within five years—two years if the loan was made before June 5, 2020.
Forbearance and deferment options
Applying for forbearance or deferment postpones student loan payments. Both of these are available under the federal student loan program
The PPP Flexibility Act
The Paycheck Protection Program was rolled out very quickly in an effort to respond to the unprecedented challenges of COVID-19. As loan applications were approved and disbursed
PPP Flexibility Act changes
– Payroll percentage: Previously 75% of the loan needed to be applied to payroll, but now only 60% of the funds need to be used for payroll costs
– Payroll, including salary, wages, all types of leave, and health benefits. Independent contractor payments do not qualify as payroll, but employee bonuses can be included. – Mortgage interest – Rent
In order to be forgiven, at least 60% of the loan amount needs to be used for payroll purposes. If less than 60% of your loan is used for payroll, you can still be eligible for forgiveness
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