Applications for loan forgiveness are processed by your lender. You need tofill out a PPP loan forgiveness application formand submit that to your lender. After you submit your application for forgiveness, your lender is required by law to provide you with a response within 60 days.
People also ask
How do I get PPP loan forgiveness for my business?
Start your business in 10 steps. Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness. First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: The loan proceeds are spent on payroll costs and other eligible expenses; and
Does the CARES Act apply to PPP loan forgiveness?
When you applied for your PPP loan, you included all employees you employed鈥攆ull-time and part-time workers鈥攊n the calculation. But for loan forgiveness, the CARES Act looks at your average full-time equivalent (FTE) employees during the covered period.
Is there a prepayment penalty for PPP loan forgiveness?
There is no prepayment penalty. You can pay off the outstanding balance at any time with no additional fees. How will PPP loan forgiveness affect my taxes? With the passing of the second stimulus bill at the end of 2020, it was made clear that a PPP loan will not affect your taxes. You do not need to include your forgiven amount as taxable income.
What can I do with my PPP loan funds?
Do not use more than 25 percent of the PPP loan funds for non-payroll purposes, i.e. rent, utilities, and covered mortgage or other debt obligations. Spend the PPP loan funds within the 8-week covered period (which begins on the date you receive the funds) only on the Specific Expenses incurred within that same 8-week period. Hire back employees.