PPP Loan Forgiveness

Technical topics regarding tax preparation.
#1
Joan TB  
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Texas
The SBA issued more interim final rules. https://www.sba.gov/document/policy-guidance-ppp-interim-final-rule-revisions-loan-forgiveness-interim-final-rule-sba-loan-review-procedures

Of particular interest to me was the timeframe for the forgiveness application. The rule now says:

A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.


Be sure you read the rules about the 25% reduction in wages if that applies to your client.

Also,
...if the borrower does not apply for forgiveness of a loan within 10 months after the last day of the covered period, the PPP loan is no longer deferred and the borrower must begin paying principal and interest.


To me, this is good news because we can handle forgiveness applications after the Oct 15th deadline before anyone would have to (maybe) start making payments on their loan.
 

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