The Paycheck Protection Program (PPP) loans have provided much-needed aid to many businesses since the COVID-19 pandemic began. And while these funds proved to be a game-changer for companies everywhere, the process for applying for and receiving this loan forgiveness is certainly new (and possibly confusing) for everyone.
There are three different types of forgiveness applications, two different covered periods, several different banks with different processes and a handful of new terms to understand. It’s no surprise that the forgiveness process comes with a learning curve for companies, so where do you even start?
In this episode of The Wrap, our guest David Crabtree, CPA, a Warren Averett Member and in-house PPP advisor, joins our hosts to answer the question: How do I file for PPP loan forgiveness, and what can my company expect?
After listening to this episode, you’ll be able to:
- Know when your company should file for PPP loan forgiveness
- Know how long after you submit your application you can expect to receive loan forgiveness
- Understand the three different types of PPP loan forgiveness applications (and know which one applies to your company)
- Know the difference between two important terms when it comes to PPP forgiveness (your number of employees vs. your full-time equivalent)
- Understand how full-time equivalent is calculated
- Know how your company’s headcount at the end of the covered period (or at the time of your application) affects your PPP loan
- Know which covered period (8 weeks vs. 24 weeks) should be used when you complete your forgiveness application
Recommended Resources for Additional Learning
- PPP Update: Borrowers are Not Allowed to Deduct PPP Expenses if Forgiveness is Expected
- SBA Announces Loan Necessity Questionnaire for Borrowers with PPP Loans of $2 Million or Greater
- Warren Averett’s COVID-19 Resource Page
This episode was recorded on November 20, 2020 and reflects our views at the time it was recorded. Information within should be used as reference only. We recommend that you talk to your Warren Averett advisor, or another business advisor, for the most current information or for guidance specific to your organization.