PPP Resources Loan Forgiveness

The IRS is providing broad-based penalty relief to most taxpayers who filed certain 2019 and/or 2020 tax returns late due to the COVID-19 pandemic. Our number one priority is the health and safety of our people, families, clients, and communities. While these are unprecedented times, BeachFleischman is committed to helping you navigate through these difficult times. We have developed a series of COVID-19 resources and updates to keep you informed of the changes that may impact you and your business. The loan proceeds are spent, or qualifying costs are incurred, within the applicable Covered Period or Alternative Payroll Covered Period. Seasonal employers may compare the average FTEEs employed during the Covered Period or Alternative Payroll Covered Period to either period listed above or to any consecutive twelve-week period between May 1 through September 15, 2019.

If less than 60 percent of loan is used on payroll costs, the amount of loan forgiveness may be reduced proportionately and may need to be repaid. What happens if I use less than 60 percent of the PPP loan on payroll costs? The Paycheck Protection Program Flexibility Act provides that at least 60% of the covered loan amount must be used for payroll costs.

Paycheck Protection Program (PPP) Forgiveness Information

The EZ form contains simplified calculations and reduced reporting requirements for eligible borrowers. In order to use the EZ form, borrowers must be able to certify that at least one of three scenarios apply, as set forth on the form. Staffing and pay levels must be maintained during the applicable covered period immediately following disbursement of the loan . The Paycheck Protection Program offered forgivable low-interest loans to small businesses facing uncertainty due to COVID-19, to help businesses retain workers, maintain payroll, and cover other existing overhead costs. To assist you in completing your forgiveness application, we have several resources available. Our Best Practices and General Loan Forgiveness Guidelines blog outlines key elements for Round 1 and Round 2 PPP loans to help you prepare for the forgiveness application.

• We invite you to learn more about Pursuit’s products and uses here.
• Since the beginning of the PPP, there have been multiple versions of interim final rules issued, safe harbors developed, guidance provided, eligibility revised, and loan forgiveness application forms produced.
• To obtain full forgiveness, loan proceeds must be spent within to the 8- to 24 week period immediately following disbursement of the loan .
• This form must be provided as part of the forgiveness application as noted below.

ADP has put together a Loan Forgiveness Checkup which outlines important steps to take before year-end to maximize loan forgiveness. The forgiveness process consists of a lender review and an SBA review. When you first submit your PPP loan forgiveness application and required supporting documentation, it will be reviewed by Union Bank. We will reach out to you via email if we have any questions or if there is missing documentation. Lenders have 60 days to complete their review once a signed PPP loan forgiveness application with complete supporting documentation is received.

PPP Flexibility Act of 2020 Highlights Show accordion content

On December 27, 2020, the new Economic Aid to the Hard-Hit Small Businesses, Nonprofits, and Venues Act (“new act”) became law. The new act provided additional funding for PPP loans made in 2021. Very welcome in the new act are also provisions that make the overall program of PPP loans and subsequent forgiveness easier to navigate and more flexible for applicants. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that would be reported, to the relevant state. A. The deadline for applying for PPP Loan Forgiveness is ten months after the completion of the Covered Period. The Covered Period is either the 24-week (168-day) period beginning on the PPP Loan disbursement date, or the borrower may elect to use an eight-week (56-day) Covered Period.

Small Business Administration released new details on loan forgiveness for Paycheck Protection Program loan borrowers. We at SBA.com® will be compiling and summarizing the most important information and tools you will need to make sure you properly apply for PPP loan forgiveness. There is a lot to digest; please bear with us as we are doing our best to make it as simple as possible for you to complete successfully. Bank account statements or third-party payroll service provider reports documenting the amount cash compensation paid to employees. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. The forgiveness amount will also be reduced if a customer spent greater than 40% on non-payroll costs.

Sign Up for our COVID-19 Updates

As a first step, we suggest reviewing the Loan Forgiveness Application Form EZ Instructions to determine if you qualify. For those that meet the standards to complete SBA Form 3508 EZ to apply for forgiveness, click the link below. Yes, if you are on the same page of the portal for more than 30 minutes the page will time out. You will be notified that an error occurred while saving your application and the portal will not let you proceed to the next page. You will need to exit the portal, log back in, and resume your application from the “To Do List” or start a new application if you were on the first page of the application when you received the error. No, once you complete the “Review and Submit” page of the application, you will not be able to view the forgiveness application again.

Please print the “Review and Submit” page if you would like a copy of what you input. During the lender review of the forgiveness application, you will also be sent a Docusign version of your forgiveness application that you can print and retain for your records. If you have previously logged onto the PPP loan portal, you can reset your password by clicking the “Forgot Password” link on the portal login page and by following the on-screen instructions.

Specifically, if by no later than December 31, 2020, the employee’s annual salary or hourly wage is equal to or greater than their annual salary or hourly wage on February 15, 2020, the borrower’s loan forgiveness is not reduced. Employees who are terminated for cause, voluntarily resign, or voluntarily request and receive a reduction of hours may also be excluded from the FTEE reduction calculations. At least 60 percent of the loan amount was used for eligible payroll costs, and no more than 40 percent was used for the other Loan Uses described above. The SBA has recently simplified the PPP loan forgiveness process, including offering a shortened application for those qualifying borrowers.

If you accept third-party goods or Ppp Loan Forgiveness Resource Center advertised at our website, the third party may be able to identify that you have a relationship with us . Should you need further assistance, please submit a request to be contacted through our Contact me form or call your assigned Union Bank Business Advisor. If there is any incorrect information on the SBA portal, please let us know by using the Contact Meform below so that we can correct the information before you submit your application.