If you received a loan through the Small Business Administration’s Paycheck Protection Program, your covered period has likely ended or will be ending soon. Whether your coverage period was for 8 or 24 weeks, it is time to think about loan forgiveness. Businesses have up to 10 months from the end of the covered period to apply for loan forgiveness but are encouraged to begin the application process early. Understandably, there is a lot of confusion around the PPP due to its complex reporting, but we are here to help you.
Either full or partial forgiveness of a loan is possible, and naturally businesses will want to have the loan completely forgiven. To that end, several criteria have to be met. Your tax advisor is the best person to walk you through the process. To get started, you will need to have the pertinent paperwork available, including payroll information, full-time employee headcounts and other relevant expenses for the covered period. With that information, your tax advisor will be well-positioned to begin preparing Form 3508 for you. They will also be able to advise you if you face forgiveness limits due to workforce or payroll reduction during the loan period, and if any safe harbor rules apply.
If you have already begun filling out the application, we can review and confirm you have provided all the necessary information before it is submitted to your lender. This will help make the process with your lender a smooth, efficient one.
Working with the expert help of your tax advisor, who understands the reporting requirements, can lessen the burden of the loan forgiveness application process and ensure you qualify for as much loan forgiveness as possible. Your advisor’s role is to make this process easier, thus removing from you the burden of understanding the rules and making the correct calculations.
For more information or help with your Form 3508, please contact either Nicole Davis or Scott Whalen, or fill in the form below and someone from our highly trained team of PPP experts will be in touch.