Time is Running Out To Get Your Application Submitted.
The Payroll Protection Program Loan deadline is June 30th, 2020, and you MUST apply by then. There is still money available for small businesses. The PPP Loan is based on your 2019 payroll and overhead expenses (Rent, Mortgage, Utilities). You would need to gather your payroll tax returns and possibly a details report. Some banks have even asked for current payrolls (2020).
The purpose of the loan is for businesses to rehire furloughed/laid off employees.
So in the 8-week forgiveness period, you have to document that you did rehire your employees or equivalent and use a portion for overhead (mortgage, rent, utilities).
Already Have a PPP Loan, But Need Help With The Forgiveness Application?
The PPP loan forgiveness application needs to be applied for by October 31, 2020, currently, no forgiveness will be allowed after this date.
Currently, this money NEEDS to be used within an 8-week window to spend the money. The eight weeks start the day the money was deposited into a bank account.
The application is 11 pages and needs to be filed with documentation of how the money was spent. The proper allocation is 75% payroll related expense and CANNOT be over 25% of the certain overhead items (Mortgage, Rent, Utilities).
Everyone is eligible to go for 100% forgiveness but you may, based on how the calculation works, be eligible for only partial forgiveness or no forgiveness at all.
Any money not forgiven is paid back over 2 years at 1% interest. So either way the money is great capital for small businesses to use for help during this crisis.
