Stimulus Ppp Loan Forgiveness

Use these tools and helpful resources to help you prepare for loan forgiveness.

Stimulus ppp loan forgiveness. You can get forgiveness for this ppp loan by spending at least 60 on payroll expenses wages salaries retirement group health insurance etc and a maximum of 40 on other. Another change contained in the december 2020 stimulus bill surrounds economic injury disaster loans edil and their impact on ppp loan forgiveness. Home coronavirus covid 19 resource center ppp stimulus payments ppp loan forgiveness.

Originally if your client s business had. On june 5 2020 president trump signed into law new updates to ppp loan forgiveness requirements extending the covered period to 24 weeks reducing the minimum loan funding that must be spent on payroll to 60 and easing the requirements for maintaining staffing and compensation levels. The december stimulus package also repealed a deduction to reduce a company s ppp loan forgiveness amount by the amount of its eidl advance grant which provided struggling businesses up to.

Borrowers who receive a second draw ppp loan of 150 000 or less will also be eligible for a simplified forgiveness process and the expenses you pay for using a second draw ppp loan will be tax deductible. That is a ppp recipient that receives loan forgiveness would not be required to include the forgiven amount in its gross income calculations and would not be disallowed its business deductions for expenses paid for with forgiven ppp loans. The year end stimulus package included significant changes to how the ppp loan forgiveness program works.

The legislation mandates the sba to create a simplified ppp forgiveness application for small businesses whose ppp loans were less than 150 000. Funds set aside for smaller businesses and underserved communities.