Received the PPP loan? You’re definitely going to want to watch the video that goes along with today’s blog for a more thorough explanation. This video goes about walking you through how to fill out your own PPP Loan Forgiveness application.
Starting from the top of the application, here is a brief overview of the process:
At the top of the application you will enter in the business information such as Name or DBA, address, and EIN.
Now the next section asks for an SBA loan number, if you received this go ahead and enter that. For me personally I could not find any kind of Loan number that I got from the SBA for this, so I left it blank. I did find my loan number for Chase and so I put that number in the Lender box.
Proceed by filling the Loan amount information and disbursement date. The disbursement date means when the funds hit your bank account. Not the first payroll you used it on, but the day it hit your account.
Next, it asks how many employees you had when you requested the loan and then how many you have while asking for forgiveness. Provide them that information.
Then is the payroll schedule… For this, you’ll mark whether you pay weekly, bi weekly, monthly, etc.
The next section is the “covered period”. The covered period is the time frame where you used the funds. You can choose either an 8 week period or a 24 week period. If you did get your loan less than 8 weeks ago you will want to use that 8 week period, but for everyone else who got the PPP loan back in May, you will want to fill out the 24 week period. This gives you a bigger window of expenses that were allowed so that the PPP loan amount is forgiven. This is one of the weird scenarios where for a short period the government is not trying to screw you. The government wants these loans to be forgiven. For all of clients so far it is only really weird circumstances that won’t be forgiven. So pick the time frame that is going to give you the best chance to be forgiven, which is the 24 weeks.
Then, you are now going to enter in your costs. How much payroll did you run during your covered period?
The next part gets a little tricky. The first line is going to be the total from the first section, then the loan amount…. For the 3rd line, they want 60% of your payroll cost that was identified in the first section. For the forgiveness amount, you are going to enter the smallest of the 3 numbers.
Read the next form thoroughly before you initial next to it so you know you understand what you are agreeing to. And then, you can fill out the survey type information, feel free to fill out each box with an X.
This is the Easy version of the Application, if you find that your form needs more than this or if you have information that is more complicated I recommend talking to your account. They can help you fill out this form in the best way to make sure your loan is being forgiven.
WATCH PART ONE HERE
DON’T FORGET PART TWO
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