SBA Loan Payment

It depends, on this one you need to talk both to the SBA and a tax accountant

if the payments made by the SBA are income tax free, then  you need to create an Other Income account titled tax free income.  Deposit the funds in a cash type account using that tax free income account and then post the payment to the loan from that cash type account

if the payments made by the SBA are taxable, then deposit the funds to the cash type bank account and use Other Income as the source account for the deposit.  Then post the payment from the cash type account

I was given this article on the topic of SBA loan forgiveness

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief

Unfortunately it still doesn't give information regarding the tax aspect of the forgiveness.  

Also there is no transaction/cash to account for, its just forgiven.  I was going to do a JE to true up the balance on the loan and offset it to other income.