For all PPP borrowers, forgiveness applications must be filed with their SBA lender (not the agency itself), while borrowers have up to 10 months from the last day of their covered period to file before they must begin to make payments (and pay interest). For many, this process may seem confusing and burdensome, feelings that are compounded by the fact that the program’s requirements and its forgiveness application forms have evolved since it was created in last April’s CARES Act.Īt the time this article was written, the SBA was offering three PPP forgiveness applications, each with different eligibility requirements. While these changes affect access to the loan program, some early borrowers are now beginning to think about forgiveness options for the loans they took out in 2020. The new law also expanded eligibility to certain qualifying 501(c)(6) organizations and allows the hardest-hit small businesses to access second-draw PPP loans should they be necessary. The extent to which you are eligible for forgiveness depends on theįorgiveness rules and regulations issued by the SBA.In its year-end 2020 Omnibus and COVID-19 relief bill (“Consolidated Appropriations Act, 2021”), Congress reauthorized the Small Business Administration (SBA) Paycheck Protection Program (PPP), adding $284.5 billion in funding and extending the program through September 2021. Not have formal business expenses that you report on your Schedule C, you will be limited to having 60% of your Please note, the SBA has limited loan forgiveness for applicants who are self-employed. Requiring the disclosure of key individuals who own orĬontrol a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these Legal entities can be abused to disguise involvement in terrorist financing, money laundering, taxĮvasion, corruption, fraud, and other financial crimes. Obtain, verify, and record in about the beneficial owners of legal entity customers at the time a new account is To help the government fight financial crime, Federal regulation requires certain financial institutions to Up to 3.5x monthly payroll costs for a second draw. If your business falls under NAICS code 72 (Accommodation and Food Services), you may qualify for PPP borrowers are eligible for up to 2.5x monthly payroll costs for their initial PPP loan, as well as any Loan forgiveness are subject to your ability to meet government-set eligibility requirements. There are no fees for applying for PPP or forgiveness. BlueAcorn does not guarantee that applications will be processed and submittedīefore PPP funds are no longer available. BlueAcorn may need additional information from you laterĪnd does not guarantee that it will be able to submit your application to the SBA based solely on the Qualified applications will be submitted to the SBA. Funds are limited, and may not be available at this time. Loan agreements will identify the appropriate lender to Small Business Administration ("SBA”) lenders. PPP loans are made by one or more approved Interest rates for the Paycheck Protection Program ("PPP') are at 1%. We have your information from the initial application, so the process is streamlined and easy. Amazing Support - Videos, Email and Chat Most loans under $150,000 will be able to apply for forgiveness in just about 5 minutes.
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