- What is the covered period of the PPP loan?
- Should I use 8 weeks or 24 weeks for my PPP loan covered period?
- What documents are needed for PPP forgiveness?
- What happens after the 8 weeks of PPP?
- Who determines PPP forgiveness?
- Who is eligible for the 24 week PPP program?
- How does the 24 week PPP work?
- Can PPP covered period be less than 24 weeks?
- How is PPP covered period calculated?
- What is the deadline to apply for PPP forgiveness?
- Should I wait to apply for PPP forgiveness?
- Is it too late to apply for PPP forgiveness?
- What are the rules for the PPP loan forgiveness?
What is the covered period of the PPP loan?
NOTE: The Covered Period for PPP loans is the 24-week period immediately following disbursement of the loan or a period ending on December 31, 2020, whichever is shorter.
If you received your loan prior to June 5, 2020, you may choose the 8-week period following disbursement of your loan as your Covered Period..
Should I use 8 weeks or 24 weeks for my PPP loan covered period?
If your business remained opened during the course of the pandemic and is eligible to use the eight-week covered period for your loan forgiveness, this could be the most beneficial option for you.
What documents are needed for PPP forgiveness?
For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).
What happens after the 8 weeks of PPP?
Under the original law, small businesses who received a PPP loan had eight weeks to use the funds, and so long as they used the loan proceeds for qualifying purposes, the entire loan could be forgiven. … Under the new law, the eight-week period was extended to 24 weeks or December 31, 2020, whichever is first.
Who determines PPP forgiveness?
In short, the PPP forgiveness calculation factors in 1) what you spent your PPP loan on, 2) your employee headcount, and 3) whether you reduced an employee’s wages by more than 25%.
Who is eligible for the 24 week PPP program?
If you were assigned a PPP loan number on or before June 5, 2020, you now have the option of taking 24 weeks to spend the funds instead of eight weeks. Borrowers whose loan numbers were assigned after June 5 will automatically have a forgiveness period that is the shorter of: 24 weeks, or.
How does the 24 week PPP work?
If 24 weeks, it begins on the date the loan proceeds are disbursed and ends 24 weeks (168 days) from that date. Alternative Period – Borrowers with a bi-weekly or more frequent payroll schedule may elect the Alternative Period.
Can PPP covered period be less than 24 weeks?
And once you apply for forgiveness, any payments are paused until the SBA makes a forgiveness decision about your loan. There are three PPP covered periods: 8-week covered period: If you received your PPP loan before June 5, 2020, you can choose between an 8-week or 24-week covered period.
How is PPP covered period calculated?
The first day of the Covered Period must be the same as the PPP Loan Disbursement Date. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14.
What is the deadline to apply for PPP forgiveness?
The SBA has not set a deadline to apply for forgiveness, but you have 10 months after the end of your covered period before you’ll be required to start making monthly payments.
Should I wait to apply for PPP forgiveness?
Most Paycheck Protection Program (“PPP”) borrowers are working toward full forgiveness of their PPP loans and are anxious to get this process started. … But that does not mean a borrower should submit a loan forgiveness application as soon as possible.
Is it too late to apply for PPP forgiveness?
Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.
What are the rules for the PPP loan forgiveness?
Forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 net profit to replace pay. If you didn’t have any other payroll expenses factoring into your PPP loan amount, this means that your entire PPP loan could be forgiven for the 24-week period.