In this video, Andy from Numberwise reviews the latest PPP loan forgiveness updates on the updated forgiveness application. Below you’ll find the highlights from the video along with time stamps if you’d like to skip ahead for the information you need 😉 as well as the links for the new PPP loan forgiveness application.
Highlights from Video
1. The New PPP Forgiveness Application
Starting at 0:49 in video
Make sure you are using the latest version! Here’s the link to the latest PPP loan forgiveness application.
Additionally, some can use the new “EZ Version” of the PPP loan forgiveness application which can be found here. Criteria to use EZ version include the following:
- Sole Proprietor (Schedule C) with no employees
- No wage or FTE reductions during covered period
- No wage reductions and unable to operate at “normal” levels due to compliance
2. Individual Employee Compensation Limits
Starting at 2:44 in video
- 8 weeks extended to 24 weeks
- 15,385 limit increased to 46,154
- Health insurance and retirement contributions can be added to this amount
3. Limits on “Owner-Employees” for PPP Loan Forgiveness
Starting at 4:05 in video
- 8 weeks extended to 2.5 months
- 15,385 limit increased to 20,833
- Health insurance premiums for S-corps shareholders is included in this limit 🙁
- Also limited to 2.5 months of 2019 compensation (you can’t increase your pay compared to last year)
- Sole proprietors – will receive automatic forgiveness
- Keep in mind you an use the EZ form if you fall into this category
4. PPP Forgiveness Application Date is Important
Starting at 6:39 in video
- Safe-harbor for return to “normal” is now EARLIER of forgiveness application date or December 31, 2020
- Application is due 10 months after end of covered period. So, your application may not be due until after December 31, and December 31 can then be the end of your safe harbor period.
5. Should I Apply Now for PPP Loan Forgiveness?
Starting at 9:00 in video
- ONLY if you made NO workforce reductions and qualify for FULL forgiveness
- Some banks are asking you to wait for them to reach out before applying for forgiveness
5. One Last (Big) Question Not Yet Answered
Starting at 10:22 in video
Will they allow a deduction for these expenses for your tax return? We don’t know yet. This shouldn’t affect your application for loan forgivenes. Stil, we’ll keep our fingers crossed on this.
Check out our COVID-19 resource page for more blog posts, videos and helpful information for businesses during the Coronavirus pandemic.