Here's Why You Shouldn't Rush to Apply for PPP Loan Forgiveness
There is a lot of uncertainty and confusion on the regulations surrounding the Paycheck Protection Program (PPP), and borrowers are questioning whether they'll qualify for loan forgiveness. For small businesses, the main concern is meeting the maximum loan forgiveness. However, borrowers shouldn't rush their PPP loan forgiveness applications, and here's why. More Time to Qualify for Full Loan Forgiveness New guidance has been released that allows PPP recipients to apply for loan forgiveness before their covered period ends, but doing this may result in a portion of the loan proceeds not being forgiven. Organizations have 24 weeks to use their PPP money, leaving them more time to take steps that will help them qualify for full loan forgiveness. In the calculations for forgiveness, there is a reduction in the loan forgiveness amount if you reduce any employee’s wages by more than 25% during the covered period. However, if wages are restored by December 31, there is a sa...