The Small Business Administration (SBA) has begun accepting forgiveness applications for Paycheck Protection Program (PPP) loans.
While you may want to put the forgiveness application process behind you, here are four reasons to consider delaying your application submission:
More changes are on the way. Congress is currently debating another COVID-19 relief package which could include more changes for the PPP program. During congressional testimony, U.S. Treasury Secretary Steven Mnuchin said Congress should consider blanket forgiveness for smaller loans. Several business organizations are also asking for changes to the IRS determinations on the tax deductibility of expenses that are forgiven.
Read through the new FAQ. The SBA and IRS recently published an FAQ document addressing questions and uncertainties about the PPP program and loan forgiveness. Click here to read through the FAQ.
Forgiveness deadline is still months away. Forgiveness applications are due no later than ten months after the end of the loan’s covered period. Depending on when you received your PPP loan, your loan forgiveness deadline could range from February to August 2021.
Be thorough with documentation. Take the time to ensure you have all appropriate documentation before submitting your forgiveness application. Some documentation is not required to be filed but must be retained by the business.
When you are ready to complete your forgiveness application, here’s what you need to know:
- Download EZ Application Form. If you are a self-employed worker, independent contractor or sole proprietor who has no employees, you may be eligible to use the EZ Loan Forgiveness Application. Click here to download the EZ form. Click here to download instructions for the EZ form.
- Download Standard Application Form. If you aren’t eligible to use the EZ Loan Forgiveness Application, then you’ll need to complete the standard loan forgiveness application. Click here to download the standard application.
- Stay in touch with your lender about submitting your application. Only your lender can submit your forgiveness application to the SBA. Stay in contact with your lending institution about when and how to complete the loan forgiveness application.