Ppp Loan Forgiveness In New Stimulus

Ppp loan forgiveness is determined based on how the small business client spent the loan proceeds.

Ppp loan forgiveness in new stimulus. The vast majority of ppp borrowers use their loan money to pay wages payroll tax expenses utilities rent and interest which are all normally tax deductible. Ppp2 creates a simplified forgiveness process for loans of up to 150 000. Your lender should provide you a link to a form soon in the new year.

Importantly at least 60 of the loan must be used for payroll costs note that thisthreshold was. Ppp 2021 adds additional eligible expenses for forgiveness. In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program to simplify the loan forgiveness process to provide restaurants access to greater relief and to extend the program through march 2021.

The new act tax provision also. It simply describes how many employees you were able to retain and how much you spent on payroll costs. Since the loan amount is based on 2 5 months of average payroll which is 10 11 weeks and since the small business can.

The new bill extends the covered period for first draw ppp loans through march 31 2021 this applies to ppp loans made before on or after the date of the enactment of the new bill including the forgiveness of these loans. Forgiveness is not automatic.