Recording the PPP SBA loan

Hello, Ismrfrs.

Thank you for reaching out to the community. While there is a lot of information out there right now that may seem confusing and misleading, you can rest assured, you came to the right place. 

As we speak, our engineers are working on a quick and simple solution to integrating the PPP into all of our QuickBooks products, including Desktop.

When integrated you'll be able to apply for the loan directly through QuickBooks, as well as correctly record it and the receipt. Here you will also be able to offset expenses as they are incurred. 

Keep an eye on this link that states: What you need to know about the Paycheck Protection Program

That is your one-stop-shop for everything about the PPP. Once the application previously mentioned goes live, you will be able to access information about it there. 

Thank you so much for your patience during this trying time and if you have any other questions, feel free to post them here. 

Deposit

Debit banking

Credit PPP Loan or whatever you want to call it as a liability. If you can 110% guarantee that it will ALL be forgiven set it up as a short-term liability since the life of the loan is only 8 weeks, If you anticipate that even a portion may not be forgiven (maybe not rehiring enough Full Time Equivalents by June 30) set it up as long term as it has a 2 year repayment plan.

Oh, and record it under the name of your bank you received it from, You are dealing with paying back or being forgiven by your local bank, not the SBA. The funds are not coming directly to you from SBA but through your bank.

AND A BIG CAUTION to anyone that has already applied at another bank DO NOT GO THROUGH ANY STEOS OF APPLYING THROUGH INTUIT WITH QUICKBOOKS AS THE BANKER since a duplicate application will void all of your applications and you will be left high and dry. (Hate to shout but it is true)

How can we access this information if we are working with our local banking institution and not applying through QuickBooks?

Question:  When will Quickbooks have this link set up....

DO you have a time frame when Quickbooks will have this done?

If the loan is forgiven (some or all of it) what transactions do you enter to record that  - knowing that the amount should not be taxable as income (revenue?)  I'd appreciate your insights.

Thanks for joining this thread, @kate111. 

While running your business during COVID-19 can be a bit confusing, rest assured, we're here to help. At this time, our engineers are working on a solution with integrating the Protection Paycheck Program into all of the QuickBooks products. 

Once the update is complete, you'll be able to directly apply for the loans through QuickBooks, as well as recording the loan transactions. 

You can refer back to this article with additional information about the PPP as well: What you need to know about the Paycheck Protection Program. 

If you have any more questions, I'm here to help. Take care!

We have already secured a loan with our bank, this post is unnecessary.

The forgiven part of these loans is a "gift" from the taxpayers and since there is no such non-income account the best you might consider would be owner equity contribution when writing off the loan.  Remember you will enter it as a liability when received into your bank account and you need to reduce the liability without a transfer of real funds.

Good morning,

We received our SBA loan this morning. Do you think we need to set up separate payroll items to document during the PPP loan period or can I just keep everything the same and use Payroll Summaries when we have to prove our payroll has stayed the same?   Thank you for any guidance.  This is all very new to me as I am sure it is too a lot of people. 

Hey there, LHuss1.
 

I understand it can get a bit confusing with all of these new processes coming up so suddenly. You've come to the right place to find an answer. We thank you for your patience as we work to support you.
 

Currently, you can keep everything the same with how you've been doing your payroll. Nothing has changed with this part. You can keep an eye on our what you need to know about the Paycheck Protection Program article for any important updates, such as how to setup payroll in relation to the loan.

Additionally, here's a resource about organizing payroll for SBA loan forgiveness, which you might find useful: 

How to organize payroll for SBA loan forgiveness
 

Feel free to reach out to me here if you have any other questions. Enjoy the rest of your day!

I don't see an option for a short term liability loan account on the QB desktop.  I do have the long-term liability option.

Hello, @Legaleagle2020.

For the short-term liability account, you can use the Other Current Liability Account. This account tracks your business owes and expects to pay within one year (short term).

Leave a comment below if you have any other questions. I'm a few clicks away to help. Have a good day!

The communication from QuickBooks on PPP loan application process has been very confusing.  I called QB yesterday and was told only payroll customers would be able to apply for the PPP loan through QB.  Will QB online users also be able to apply through QB?

Our CPA suggested opening up a new checking account for PPP FUNDS, and to do payroll out of that account. But is that really necessary to do that which would require ordering checks, paying intuit payroll bank fees, changing utility and   health insurance drafts just for the 8 weeks? [name removed] [business address removed] [removed] [removed] 

Our CPA suggested opening up a new checking account for PPP FUNDS, and to do payroll out of that account. But is that really necessary to do that which would require ordering checks, paying intuit payroll bank fees, changing utility and   health insurance drafts just for the 8 weeks? [name removed] [business address removed][removed] [removed] 

I am unable to open the link:  How to organize payroll for SBA loan forgiveness 

Do you have this information available or has the information been taken down?  Should you be taking the funds directly from that account or transferring them into your operating account as you need?

Also, what happens if you have employees who's income is over the PPP Loan threshold?  Should you transferring funds less any income over the threshold?  Should you be paying your taxes(federal/state) and health insurance through your operating account as those funds are not forgiveable? 

Sorry, I feel that there are so many questions that are not answered in regards to this loan/grant.

The initial advance actually came directly from SBA. So does that mean I should set them up as a customer?

Hi, JDRNC. 

We're currently working to build and launch a simple application and funding process for the Paycheck Protection Program. With our QuickBooks Online products, you already have access to most of the information you need to apply for a loan under the Paycheck Protection Program.

If you use QuickBooks Online Payroll you will have access to apply through QuickBooks to the PPP. If not we can still help you apply. We built an informative article on how to apply to the Paycheck Protection Program. It will guide you on how to apply and certain documents you may need. If have any questions please reach out to me by replying below.

So you WILL be opening up the PPP app to QB online customers?  Do you know when?

Thank you

Hey, JDRNC.

If you follow the link for Apply for the PPP, you can sign up for notifications there. It'll look like the picture below. We'll email you as soon as the application is available and if you have any questions I'm here as well.

How to organize payroll for SBA loan forgiveness

This link does not seem to work

Please redirect

Appreciatively

Hi marcimd, 

The Paycheck Protection Program Loan may apply for loan forgiveness from their lender. You can complete the sample application and submit the documents to any existing SBA-approved lender. Let me share with you a few information about this.

Here's the direct link for the application: Paycheck Program Sample Application.

For more information about what you need to apply for this loan, please see this article: Paycheck Protection Program.

Feel free to let me know if you need further assistance.

Has QB worked through the new integration they mentioned in the first reply to this thread?  I don't feel like we have a straight-forward answer on how this will need to be recorded from QB, only that it is coming.. Any timeline for this? 

How have others been recording these in QB Desktop?  I understand it is a liability; however, how are you offsetting the costs as you run payrolls? 

Thanks, 

Jessica