Date: August 6, 2021
Don’t be part of these statistics!!!
Almost 2 million Paycheck Protection Program (PPP) loan borrowers have not yet applied for forgiveness! Are you one of the many business owners who got a PPP loan in 2020? If you did then it’s important to know that your window for getting those loans forgiven is closing!
For example, if you took out your PPP loan on April 15th, 2020, and used the maximum coverage period (24 weeks) you only have until August 30th of this year to apply for forgiveness. Otherwise, you’ll start receiving those lovely ‘payment due’ notices soon!
You must submit your forgiveness application within 16 months of receiving the funds to receive a tax deduction and get them forgiven. Your approximate timing considers that you have a 24-week period to spend the funds where no payments are due. The Flexibility Act issued in June of 2020 also grants an additional 10 months deferral period before repayments start.
The forgiveness application must be submitted to the lender that processed your loan. There are different forms for different situations, and it can get confusing. If you received a loan for less than $150,000 you can use the “simplified” form (3508S) which requires fewer calculations and less documentation. If your loan was more than $150,000 you must use Form 3508 which is the most complex form. If you were self-employed with no employees you may be able to use the easiest form (Form 3508 EZ), but it all depends on your unique situation.
Unsure about which forgiveness application you should submit or how to avoid repaying the loan altogether? We can help! Click here to schedule a complimentary strategy session with us!
Read more here: https://www.entrepreneur.com/article/376537?utm_source=newsletter&utm_medium=email