New Stimulus Bill Ppp Forgiveness

In december 2020 the federal government passed a new 900 billion stimulus that includes 284 billion in additional paycheck protection program ppp funding for small businesses.

New stimulus bill ppp forgiveness. The new covid 19 relief bill also. The new bill repeals section 1110 e 6 of the cares act which required ppp borrowers to deduct the amount of their eidl advance from their ppp forgiveness amount. New stimulus bill includes second round of ppp loans for small business and forgiveness rule changes favorable to borrowers congress finally passed further covid relief and it potentially bodes.

This will no longer apply. Your lender should provide you a link to a form soon in the new year. The new act clarifies that gross income does not include any amount that would otherwise arise from the forgiveness of a ppp loan.

If your ppp loan was for 150 000 or less there will be a new simple one page form to apply for forgiveness. In other words if you got a 10k eidl grant advance in 2020 you had to subtract that amount from your ppp loan forgiveness amount. You don t have to show that you ve been impacted by covid 19.

If you apply for a new sba section 7 a or 504 microloan and get approved before september 20 2021 then your first six months of principal and interest up to 9 000 per month is also forgiven. Simplified application and other terms of note. Creates a simplified forgiveness application process for loans of 150 000 or less.

Congress at last passed a second stimulus bill this week as of this. While the original coronavirus aid relief and economic security act cares act made it clear that the forgiveness of a ppp loan would not be included in income the proposed language for the. New stimulus bill includes second round of ppp loans for small business and forgiveness rule changes favorable to borrowers.

Ppp borrowers with naics codes starting with 72 hotels and restaurants can get up to 3 5 times their average monthly payroll costs again subject to a 2 million maximum.