Should I be applying for PPP loan forgiveness?
Should I Be Applying For PPP Loan Forgiveness?
Our recommendation to all of our clients is to wait to apply for PPP loan forgiveness. Yes, the application looks easy to complete. Yes, your covered period may be over. However, we do not have all the guidance necessary to apply for forgiveness.
With the continuation of the Covid-19 situation, the down economy, high unemployment, etc., the President and Congress are discussing different stimulus packages. These talks have included increasing the funds available for PPP loans, allowing certain businesses to apply for a second loan, implementing automatic loan forgiveness if under a certain threshold ($150,000 has been tossed around), etc. The AICPA (American Institute of Certified Public Accountants) has been advocating to Congress to create a law allowing the PPP loan forgiveness to be truly nontaxable and expenses fully deductible, as originally intended, as well.
Due to all of these uncertainties and no near-term due date on the application, the best option is to wait.