PPP forgiveness loans are complicated and continue to evolve. Learn practical tips on how to navigate the PPP loan forgiveness process in our latest livestream. We will also provide the latest legislative updates out of Washington D.C.
Find additional PPP guidance here: Get the Help You Need With PPP Loan Forgiveness
- Jen Rohen, Principal, CLA
- Omar Nashashibi of the Franklin Partnership
- Jennifer Witts, BizOps Chief Financial Officer, CLA
In case you missed it:
Questions and Answers:
Could forgiveness amount be affected if application for forgiveness is submitted after 8-week period, but prior to end of 24 week period?
That’s not expected to be the case. We don’t anticipate your choice of covered period would impact your forgiveness amount as long as you’ve spent your proceeds on allowable expenses within the covered period you select. However, we are not clear how the FTE calculation would be impacted if you apply for forgiveness prior to the end of your covered period.
On my PPP application I said I'd use 5% of the loan for utilities...which are listed on my Schedule C. Do utilities include cell phone/internet costs? I also said I'd use 5% of the loan for mortgage interest. However, mortgage/mortgage interest is not listed on my Schedule C. Can I still use that 5%, if I can provide a document from the bank that shows I did pay for mortgage interest? If I can’t use the mortgage interest because it’s not listed on my Schedule C --- can I use that 5% I had allocated for it---and tack it on to utilities costs? Or do I have to sacrifice that 5%?
Allowable expenses can be included on your forgiveness application, regardless of the percentages you indicated on your application or whether or not they appear on your Schedule C.
When does the 24 weeks counting start…when I received the loan (in mid-July) - or after the PPP program closed, on August 7th?
Your covered period begins on the date you received your PPP funds from your lender. You may also elect an alternative covered period that aligns your covered period with your next payroll cycle if you have weekly or biweekly payroll. If unsure, you can ask your lender to confirm that date for you.
Can I just pay myself monthly by writing a check I then deposit in my account?
Yes you can.
Any news on the proposal to not require request for forgiveness on amounts under $150K?
There is widespread support for this, but no updates or details on that matter.
I understand we have to report the funds as loans until they are “legally” forgiven. Is that your understanding as well?
Am I restricted from making equity distributions to my owner while I have outstanding unforgiven PPP loans?
It’s my understanding that you can make those distributions.
With the extended covered period to 24 weeks, isn’t it likely that qualifying payroll expenses could total the loan amount and there would be no need for keeping track of non-payroll costs?
That is correct.
Our main concern is that we need to lay off workers to a construction work slowdown. We have used up our loan with payroll, but are hoping that the day we apply for forgiveness that will be the cutoff for FTE and salary reduction requirements. So that is our reason for rushing the forgiveness application, unfortunately our bank keeps putting off the date to apply for forgiveness. Am I interpreting this correctly?
Your interpretation is consistent with Jennifer Witt’s remarks during today’s livestream. We’re still hopeful for clarity on handling layoffs occurring after your covered period without having those impact forgiveness.
It was mentioned that we had to ask for forgiveness of the PPP loan. How do we ask for it?
Requesting forgiveness begins with the submission of either a form 3508 or form 3508EZ to your lender. Contact your lender for more details of how they are accepting those forms from borrowers (electronic via portal, hard copy in person, hard copy via mail, etc.)
Thanks for all the great info. During an answer to my question I lost connection. Is there a way to replay the conversation?
If you go to CLA’s YouTube channel, you’ll find recorded versions of all livestreams, including today’s session. Please consider subscribing to our channel so you are notified whenever we go live.