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- In general, under the current laws and guidance, PPP loans are eligible for forgiveness if: At least 60% of PPP loan funds are used for eligible Payroll Costs and any remaining loan funds are used to pay other eligible business expenses; PPP loan funds are used within 24 weeks; and Staff and wage levels are maintained (subject to exceptions).
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What happens if the forgiven portion of a PPP loan is not met?
Sep 21, 2022 · WASHINGTON — The Internal Revenue Service recently issued guidance addressing improper forgiveness of a Paycheck Protection Program loan (PPP loan) PDF. The guidance confirms that, when a taxpayer's loan is forgiven based upon misrepresentations or omissions, the taxpayer is not eligible to exclude the forgiveness from income and must include ...
Mar 13, 2024 · Where to apply for loan forgiveness. Effective March 13, 2024, all borrowers, regardless of loan size, can use SBA's direct forgiveness portal . Applying for forgiveness using the portal can take as little as 15 minutes.
Dec 21, 2021 · The IRS recently released guidance (Rev. Proc. 2021-48 and Rev. Proc. 2021-49) on the timing of gross receipts and tax-exempt income from the forgiveness or partial forgiveness of Paycheck Protection Program (PPP) loans.
If the loan is fully forgiven, the borrower is not responsible for any payments. If only a portion of the loan is forgiven, or if the forgiveness application is denied, any remaining balance due on the loan must be repaid by the borrower on or before the maturity date of the loan.
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For both rounds of PPP loans (collectively, “covered loans”), the lender may forgive, and the SBA may guarantee, the full principal amount, if certain criteria are met as described below. See 15 U.S.C. §§ 636(a)(36), (a)(37), and 636m.
Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.
Jan 5, 2024 · Those who have met the payroll requirements can simply complete the PPP forgiveness application, which takes most borrowers less than 15 minutes. If PPP borrowers are unsure if their loan has been forgiven, they can check by logging in to the MySBA loan portal.
