PPP Loan Forgiveness

To All Valued Clients

Some of you have been receiving requests from your banks to complete the PPP loan forgiveness applications. As of 9/30/20 the SBA has not approved any of the 100,000 forgiveness applications already received by the SBA (out of the approximately 5,000,000 original loans funded).

The actual date the forgiveness application is due is 10 months after the end of your expense covered period. For example, if you received your loan 4/7/20, and you elected the 24-week expense covered period, the usage period ends 9/21/20, which results in a forgiveness application due date of 7/21/21.
There is pending legislation in Washington DC to have automatic forgiveness for loans under $50,000. This would mean little or no work from you and/or us to have your PPP loans forgiven.

Some of you have decided to go ahead and start the loan forgiveness process now. If you will need our assistance in this process please contact us by December 15th, so that we have the time needed to get completed before our busy season hits.

PPP loans that are forgiven are considered “taxable” by the IRS as of now. There has been some movement in Washington DC to change the tax status to “exempt”. We will let you know when we receive more information.

There are some specific information/decisions needed to process the loan forgiveness application:

Covered period?
Which expenses to use?
Documentation to include?
When to apply?
Tax planning?

Please contact our office if you need assistance or have questions with the process. We want to make sure the loan is forgiven to the extent able.

Thank you!

Teresa Harrington
Harrington & Associates PA