Stimulus Bill Ppp Forgiveness

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.

Stimulus bill ppp forgiveness. Ppp forgiveness simplified ppp2 creates a simplified forgiveness process for loans of up to 150 000. The new coronavirus stimulus bill mandates the united states small business administration sba to create and provide a simplified ppp forgiveness application for small businesses who were only qualified for ppp loans of less than 150 000. The act introduces a simplified forgiveness application for ppp borrowers with loans of 150 000 or less.

Another change contained in the december 2020 stimulus bill surrounds economic injury disaster loans edil and their impact on ppp loan forgiveness. You still must apply but for loans of 150k or less you can use a one page certification. Congress at last passed a second stimulus bill this week as of this writing it is still awaiting president trump s signature and it includes a second round of ppp loans for affected small.

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. Based on 2017 irs data 37 percent of self employed. To be eligible for full loan forgiveness ppp borrowers will have to spend no less than 60 of the funds on payroll over a covered period of either eight or 24 weeks the same parameters ppp1 had when it stopped accepting applications in august.

Originally if your client s business had been. See bkd article congress expected to pass phase 4 covid 19 stimulus bill for a summary of other stimulus details. 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.

Forgiveness is not automatic.