Recommendation to Wait to Apply for PPP Loan Forgiveness
Banks have announced they are ready to accept PPP loan forgiveness applications. However, all webinars and sources that we follow daily are recommending to wait, including the American Institute of Certified Public Accountants (AICPA). Several banks are recommending waiting as well. Reasons we recommend to wait include:
- On-going discussions by Congress regarding the automatic forgiveness of certain loans
- There is a possibility of the Employee Retention Credit being available as well as the PPP loan. That being the case, clients would want to access/utilize payroll and non-payroll costs in a manner to maximize overall benefits
- Clarifications are still expected on costs that can be included in forgiveness calculations
- Payroll vendors are working on generating the necessary reports to simplify application information
- Waiting will allow the process to develop efficiency–those filing now will be “beta testers” and may require more overall time to apply
- Loan applicants have 6 months to spend the funds and 10 months from the date of proceeds to apply for forgiveness, so there is no urgent reason to file
Questions or need guidance on applying for PPP Loan forgiveness to your situation, please visit with one of our CARES Act experts, Annette Benson at (320) 214-2910.
