Stimulus Loan Forgiveness Rules

Sba loan forgiveness prompts relief but also confusion about timeline and rules by erin arvedlund and chris a.

Stimulus loan forgiveness rules. The new bill repeals section 1110 e 6 of the cares act which required ppp borrowers to deduct the amount of their eidl advance from their ppp forgiveness amount. Ppp borrower tax relief under stimulus bill it s finally happening. October 14 2020 secretary of the treasury steven mnuchin listens as u s.

Loans of less than 150 000 will get simplified forgiveness application the legislation mandates the sba to create a simplified ppp forgiveness application for small businesses whose ppp loans were. And not have to include loan forgiveness in income. But very significant change in the ppp rules will be to provide.

You must apply for forgiveness within 10 months after the end of the covered period which is the 24 week period that starts when you received your ppp loan. All documentation that would support the small business owner s loan forgiveness should be maintained for at least six years after the date the loan was forgiven or repaid. This was seen by many to be an indirect way of making the forgiveness of ppp loans taxable.

President donald trump speaks to the press outside the white house in washington d c. This will no longer apply.