The past few months have been very trying on businesses and individuals. No one seems to have been spared. As you may have heard on the news Congress passed funds available to businesses as PPP loans and extended the use of the funds in order to qualify for foregiveness of these loans.
Recent rules regarding the foregiveness phase:
- Borrower has 24 weeks to use up the loan funds from date of receipt and used by qualified expenses-payroll costs, rents, mortgage and utilities.
- Borrower has 10 months from the end of the Covered Period to submit their Loan Forgiveness Application, but recommended no later than December 31, 2020 as long as loan funds used up.
- Any amount not foregiven accrues interest from date received and not required to make any payments until foregiveness is determined.
- Foregiveness of loan is other income for a company because the expenses used by the loan are not deductible.
- It is expected any loans under $150,000 will get automatic foregiveness as long as you complete and file the application.
- Get advice from professional in filling out the Loan Foregiveness EZ Form Application.