The SBA has released their initial application and instructions to apply for forgiveness for the PPP loan. Many of our clients have participated in this program. There has been a lot of rumor and speculation about how the forgiveness process will work. As formal guidance starts to come out, we want to make sure our clients have the best information possible. The covered period is a short window, and it’s important that funds are spent appropriately to qualify for forgiveness. However, please keep in mind that without forgiveness, this still represents a very low (1%) interest rate loan. It doesn’t make sense to force expenses for forgiveness if it will harm the cash flow of your business long term.
With that in mind, here are some key points from the new guidance:
While these are just a few of the highlights, it’s helpful to have some concrete guidance as to what information will be necessary to calculate and document expenses for forgiveness. The application and instructions can be found here.
As always, if you have questions about how these instructions apply to your specific situation, please do not hesitate to ask.
Watson & Associates, PA, Certified Public Accountants is a full-service professional CPA firm founded in 2002. We provide personalized, professional service to each of our clients.
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