The Paycheck Protection Program: How to Qualify for Loan Forgiveness.
October has started the loan forgiveness approvals. And where are you at with this? Have you spent 60% of your loan on payroll? If not, what are the eligible and allowable expenses? Do you have your certifications and documents ready to submit?
Not to worry, I would like to help you with these crucial issues and others. It’s a forgone conclusion that Full-on Forgiveness is a complicated process and bumpy journey. The guidelines keep coming out, and wrapping your head around it is a formidable task. We have all been shaking our heads and feel your pain.
The good news is that lenders are lobbying to simplify the process of forgiveness. It actually is in their best interest to go to bat for you.
So, let’s begin.
If you have over a $150,000 loan, it may be prudent to hold off your application for the time being. I would gladly explain further. Just get in contact with me after you read this article.
There is a 60-day review for borrowers’ applications by the lenders and then is submitted to the SBA. The correct and acceptable documentation must be gathered and audited. This is then followed with your certifications, proving that you met the guideline rules.
You should note, you may not see any reduction in your loan forgiveness amount if you lowered the employee headcount or wages and salaries.
Additionally, the burden is put on you to calculate the forgiveness amount, followed the guidelines, and submit supporting documents. This could be payroll costs and reports, mortgage interest, rent, utilities, and other eligible expenses.
Three applications were issued by the U.S. Treasury Department and the SBA. Choosing the right application is immensely vital to adequately securing and reducing your loan forgiveness. The application best suited for you depends on your business type, the dollar amount of your loan, any reductions in employees or wages and salaries, and more.
Sal Schibell, CPA, CFP®, MBA, MS taxation of Lawson, Rescinio, Schibell & Associates, P.C. offers customized reports that provide the information needed to apply for a Full-on Forgiveness. He assists in gathering your documentation, payroll reports, allowable expenses, certifications, and all other necessary papers for a smooth and worry-free application process.