Practice owners who received the PPP loan earlier this year had 24 weeks to spend the funds on certain payroll and facility expenses to qualify for full forgiveness of that loan. For many of our clients, the 24-week Covered Period has recently ended.
Did you know that you have 10 months following the end of the Covered Period to file the paperwork with your lender to apply for full forgiveness of the PPP loan? We are generally recommending that our clients do NOT rush to complete the loan forgiveness paperwork. Believe it or not, the PPP loan forgiveness rules are still fluid as follows:
1. The SBA is considering waving the requirement for businesses that borrowed less than $150k in PPP funds to file any type of forgiveness application with their lender.
2. Perhaps the EIDL grant will also be forgiven for businesses that borrowed less than $150k. Currently, you’re required to repay that grant of $1k per employee received last spring as part of the PPP Loan forgiveness process.
We have prepared the PPP loan forgiveness application for a few clients so far and have found the paperwork to be extremely labor intensive. For that reason, we will charge our clients who request our assistance with their application the following:
• If we provide both accounting and payroll services to your practice $ 750
• If we provide accounting services but not payroll services $1,500
• If we don’t provide accounting or payroll services to your practice $2,500
Since the rules are fluid, you still have 10 months before the paperwork is due, and there is a decent chance that no paperwork will ultimately be required, why rush to start the PPP Loan forgiveness paperwork at this time?