How do I enter in the sba loan I received. The initial 1k that was deposited does not need to be paid back but the 10k loan does.

Thanks for dropping by the Community, missy19.

I’ll help and make sure you can properly record your SBA loan and the forgiven amount. Let’s use the Other income account to track the funds.

The process is quick and easy. I’m here to show you how to do this in QuickBooks Online (QBO).

1. Go to the Accounting menu on the left panel and pick Chart of Accounts.
2. On the All Lists page, tap the New button in the upper right to open the Account window.
3. From there, click the Account Type drop-down to choose Other income and select the correct category in the Detail Type drop-down.
4. Enter a term that will identify the account in the Name field.
5. Fill in the remaining fields.
6. Click Save and Close.

Once done, use the newly created account to input the initial $1000.00 forgiven amount. In regard to the remaining amount, create a liability account and input the transaction from there. Then use a journal entry to put all the loaned money. For detailed instructions, check the following guide: Set up a loan in QuickBooks Online.

For additional resources, here’s an article that will guide you on how to: Track how you use your Paycheck Protection Program loan. Make sure to choose QuickBooks Online to easily view the instructions.

To learn more on how QuickBooks handles Paycheck Protection Program loan forgiveness, click here to see the complete details. You can visit the Microsite to keep you in the loop for the latest updates about the program.

Feel free to add a comment if you have additional questions on how to handle your SBA loan. I’ll jump right back in to answer them for you. Wishing you and your business continued success