Business owners can qualify for PPP loan forgiveness. While Congress debates the next stimulus package, forgiveness is extended to 24 weeks. This extension came into effect with the Paycheck Protection Program Flexibility Act.
The PPP loan forgiveness extension allows employers to qualify for loan forgiveness until December 31, 2020. Previously, the rehire date was June 30, 2020. With the new 24 week extension, employers are going to be able to incur expenses over the 24 week period from June 30.
This not only gives extra time to employers to qualify for the PPP loan forgiveness but help complete forgiveness of their PPP loans. There are also talks about a new PPP loan forgiveness that will cover more employees and employers in the next stimulus package.
Before we get to that, employers have plenty of rooms to breathe. The PPP loan forgiveness extension is going to increase the maximum loan forgiveness to $46,153. Given the previously set maximum loan forgiveness was around $15,000, this increase will surely help employers at a greater scale.
PPP Loan Forgiveness in the New Stimulus Package
The new stimulus package have been in the talks for a while now. Whether or not the new stimulus bill will include a better PPP loan forgiveness, it will surely include somethings about it.
At the time of writing, the Senate Republicans added an automatic forgiveness for loans below $150,000 in the HEALS Act. It doesn’t end there though. The Senate Republicans also added an option for loans that are above $150,000 but less than $2 million. This is just in the process though. If the HEALS Act that includes it passes, employers will be able to expand their operations.
As for how to initiate your PPP loan forgiveness before the new law is passed, there are a few easy ways. American Institute of Certified Public Accountants (AICPA) allows business owners to process PPP loan forgiveness for free.
The free tool can be reached from here. This tool helps small business owners who got PPP loans to process their loan forgiveness automatically. Enter the necessary amounts and see whether or not you qualify for loan forgiveness. To process the PPP loan forgiveness application, you will need the following.
- SBA PPP Loan Number
- Lender PPP Loan Number
- PPP Loan Amount
- Number of employees at the time of loan application
- Number of employees at the time of forgiveness application
- EIDL Application Number
- EIDL Advance Amount
You can also process your PPP loan forgiveness application on paper now that it is extended. For this, you will need to use Form 3508EZ. The application form for PPP loan forgiveness can also be filed electronically on SBA.gov.