Get Prepared for PPP Loan Forgiveness
This week, SBA and US Treasury announced new forgiveness applications for small businesses that received the Paycheck Protection Program loan.
The EZ version of the forgiveness application applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
WHAT THIS MEANS:
If you use any of these forms when filing your tax return, the EZ application may apply to you:
The new application gives borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period.
- Form 1040 Schedule C Profit or Loss from Business
- Form 1099
- Schedule K-1
Download the EZ Application Here
DO NOT FILE THE APPLICATION
Application For Informational Purposes Only
Your bank will contact you when it is time to submit your PPP loan forgiveness application.
COMING NEXT WEEK:
Full Forgiveness Application