The SBA is currently accepting second draw PPP loan applications from participating lenders during a period running from January 13, 2021 to March 31, 2021. The deadline for applications is subject to change, however, and borrowers are encouraged to keep a close eye on the Small Business Administration website.
In the meantime, if you applied for and received a PPP (Paycheck Protection Program) loan, you may be eligible for loan forgiveness. PPP forgiveness programs are available for business owners to help reduce (or even eliminate) the repayment of the loan, and a CPA from Aldridge Borden can help you navigate the forgiveness process, giving your business its best chance at a brighter future.
Time may be running out to apply for PPP loan forgiveness, so let’s answer a few basic questions.
Anyone who applies for and receives PPP loans may be eligible for loan forgiveness. One major qualification is how that PPP loan money is spent.
You may be eligible if you spend your loan proceeds (during the 8 or 24-week period after disbursement) on:
- Eligible payroll costs
- Business mortgage interest payments
A borrower can apply for forgiveness when:
- All loan proceeds eligible for forgiveness have been spent
- Within 10 months after the last day of the 8 or 24-week covered period
If one or all of these conditions are not met, the borrower will be expected to begin loan repayments.
How Do I Apply for Loan Forgiveness?
Thankfully, the steps for loan forgiveness are pretty straightforward. It’s the little details and accounting peculiarities that a CPA from Aldridge Borden can help you with the most.
Step 1 – Complete the correct form from your PPP lender
Contact your PPP lender and ask how they are receiving loan forgiveness applications. Many lenders are using online portals. You will need to determine the correct loan forgiveness form. Depending on your lender, you may require an SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or another form specific to your lender.
If you’re unsure which form you need, consider hiring a CPA to simplify and expedite the process.
Step 2 – Gather documentation
The necessary documentation falls into two broad categories: payroll and non-payroll. Most of the documentation necessary will fall within the covered period of the PPP loan.
Payroll documents (including but not limited to):
- Bank account statements documenting compensation paid to employees
- Tax forms – reported payroll tax filings, state wage reports
- Receipts or account statements documenting employer contributions to employee health insurance/retirement
Non-Payroll documents (including but not limited to):
- Business mortgage interest payments
- Rent or lease payments
- Utility payments/billing statements
Step 3 – Submit Application
Once you work with a CPA to identify and provide the necessary documents, you’ll simply submit your forgiveness application and any other requested documents throughout the forgiveness process.
It’s important to keep in touch with your loan provider so that you can help them in every way possible with the processing of your forgiveness application.
Don’t Go It Alone
Navigating loan applications can be challenging enough, but forgiveness applications with a firm, government deadline can be even trickier. When making the most of your PPP loan forgiveness opportunities, why gamble the future success of your business on going it alone?
A CPA from Aldridge Borden can ease the process, gather documents, and make the best case for maximum loan forgiveness.
Contact the expert CPAs at Aldridge Borden and Co. to learn more about PPP loan forgiveness today.
In good times and bad, a CPA from Aldridge Borden can help your business succeed sooner. Guiding you with expert hands through audits, tax issues, capital maximization analyses and strategies Aldirdge Borden’s CPAs have the professional skills to help you make the right choices the right decisions the first time through! To learn more about what a CPA can do for you, call (334)834-6640 today!