SBA & Treasury Simplify PPP Forgiveness Process
The US Government recently announced it was making the process for loan forgiveness for loans of $50,000 or less easier on business owners.
This is a welcome reprieve for the 3.5 million businesses who received funding under the program. These businesses represent 68% of the loans processed and 12% of the overall relief provided.
While the crisis continues to build, and the discussions on relief falter in Washington, it’s welcome news by many that they are taking steps to simplify this process.
Head over to the SBA to learn more about the forgiveness process and see the new forms.
For more on financial resources to get you through the crisis, read the below posts:
Comments (1-10)
Excellent information. Thank you for the update. Should applications for forgiveness be submitted now, and if so, where?
Someone asked if PPP FORGIVENESS is taxable in one of the comments. Literally the forgiven amount is NOT taxable. BUT...any expense you applied the forgiveness money towards is NOT deductible. So the wages you paid and the rent you paid with your PPP money will not be deductible.
Net effect, in theory the PPP is not taxable but as far as your taxable income goes, it will have the same result as if it were.
I think this is great news for all companies that needed this loan to keep their business operating! Maybe they will forgive all loans under 50k. I know the NAR is pushing for forgiveness for all loans under 150k.
I have been in business since 2009 and I have looked many of times to start finding houses here in virginia. I have many contacts and builders who i now do it but i would love to start doing it my self. I just need the start up to be able to do it. I have the construction side well covered as I do everything except foundation,electrical, hvac, and major plumbing. I am licensed and insured just a business license though but like I said before I know plenty of class A contractors.
I received a EIDL loan from SBA is this included?
In October of 2018, I purchased a small storefront travel agency where I've worked for 19 years. This year, my business has basically had no income for the last 7-8 months, yet I still pay my employee her regular salary, along with my own. I had to let my admin/receptionist go for now.
I was informed by my local bank that my payroll forgiveness loan request was "too small" (my request was just shy of $10,000) so I didn't qualify for the PPP.
I did receive a SBA loan that will have to be paid back with interest, but is there hope for reimbursement or help with the forgivable PPP?
It is a nice gesture from the SBA & Treasury.
I recently received the paper work for the forgiveness under 50000 and had received 4000 EDIL grant. They are now putting the PPP amount minus Edil amount and the balance becomes a loan to your back. If you have all your records on how it was spent you should be fine. So the grant EDIL is just that but now they are combining the amounts and if it puts you over the PPP you owe. In the beginning they were not related. Even my banker said it wasn’t connected. Government deposited it back directly.
Was it good for my company at the time yes.
Kept people off of unemployment for awhile and paid a few bills. Are we better off for it I don’t think so. Now we owe 4000.00 and are still closed. Would I do it again? Not sure
Eric, I have two questions:
- we were able to get an SBA loan for 30 years for $72,000.
- Can we apply for any forgiveness programs if we can fill out the forms that you showed us with this SBA loan?
- if not, can we apply for the PPP loan with and SBA loan already approved?
- Thanks for your support and knowledge. A great article
They have developed a form, 3508S for loans of $50,000 or less. Your bank should have these or they can be found at the sba website. The loan applications will first be reviewed by your bank, who funded the loan and then the SBA should provide final approval.