PPP loan forgiveness for small businesses has been a popular topic since the CARES Act was introduced, mainly because it has created so many questions from small business owners about how to qualify for loan forgiveness.
The Small Business Association and Department of the Treasury released a 10-page document that covers 23 of the most frequently asked questions about PPP loan forgiveness. The new guidance includes four sections including general loan forgiveness, payroll costs, non-payroll costs, and loan forgiveness reductions. This includes guidance on how to calculate how much of your PPP loan may be forgivable.
You can begin your application, but it is suggested that you wait to submit it until there are complete details on loan forgiveness.
“There has also been some discussion about broader PPP loan forgiveness in the next stimulus bill. The Washington Business Journal says more lawmakers have been pushing to forgive smaller PPP loans. Senate Republicans included automatic forgiveness of loans below $150,000 in the HEALS Act—along with some forgiveness options for loans between $150,000 and $2 million—but we won’t know for sure until Congress agrees on a new deal.”