New Stimulus Package Ppp Loan Forgiveness

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 package ppp loan forgiveness. In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program to simplify the loan forgiveness process to provide restaurants access to greater relief and to extend the program through march 2021. Forgiveness is not automatic. Because the new stimulus bill now forgives up to eight months of principal and interest payments on section 7 a and 504 microloans from the sba.

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. The new stimulus package also clears up the controversial issue of ppp deductibility and taxation. You can get forgiveness for this ppp loan by spending at least 60 on payroll expenses wages salaries retirement group health insurance etc and a maximum of 40 on other.

Ppp forgiveness simplified ppp2 creates a simplified forgiveness process for loans of up to 150 000. 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 still must apply but for loans of 150k or less you can use a one page certification.

In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program to simplify the loan. This will no longer apply. These guidelines cover loans taken under the original cares act and second draw loans.