Learn what you can do to help get some or all of your funds from the Paycheck Protection Program loan forgiven.
Note: The Paycheck Protection Program Flexibility Act (“PPP Flex Act”) was signed into law on June 5, 2020. The PPP Flex Act extends the availability of loans under the Paycheck Protection Program (PPP) and adjusts certain rules applicable to PPP loans. The information reflected here may therefore be outdated. We are working to update our resources to reflect these updates to the PPP, so be sure to check back soon. Please refer to the latest guidance from the SBA and Treasury to confirm current program rules and how they apply to your particular situation.
Start your Paycheck Protection Program Loan application within QuickBooks Capital. If your PPP loan is approved you may be eligible for loan forgiveness after the 8-week period following loan disbursement.
|Note: You may apply for loan forgiveness after the 8-week period, but the process and requirements may change. Please check back for updates.|
Here are some things you should think about in preparing for forgiveness.
Use the funds as outlined by the SBA
Your loan may be forgiven, in whole or in part, if you use the funds as outlined by the SBA. These directions include, but are not limited to, the following criteria:
- At least 75% of the loan forgiveness amount must be used for eligible payroll costs
- Maintain the same number of employees on the payroll.
- Maintain employee* salary levels.
- Rehire and restore wages to employees who were laid off between February 15 and April 26, 2020, as a result of the coronavirus by June 30, 2020.
Only loan proceeds spent on payroll and other permissible uses during the 8-week period following the disbursement of your loan are forgivable (costs incurred after the eight-week period are not forgivable), under certain circumstances.
If you’re unable to meet the requirements for forgiveness, you may still be eligible to have what you owe on your loan reduced. The total forgivable amount may be proportionally reduced as a result of the:
- Reduction in the number of employees
- Reduction in employee salary or wages
Apply for loan forgiveness
After the 8 week period of PPP loan disbursement, you can apply for loan forgiveness. In order to apply for forgiveness, you need to gather documentation in support of the fact that you complied with the directions of the SBA, some of the documentation may include :
- The number of employees on the payroll.
- Employee pay rates.
- Payroll tax filings.
- Payroll costs paid in the 8 weeks following disbursement of the loan.
- Mortgage interest payments in the 8 weeks following disbursement of the loan.
- Rent or lease payments in the 8 weeks following disbursement of the loan.
- Utility payments in the 8 weeks following disbursement of the loan.
- Any advance received under the CARES Act EIDL Emergency Grant program.
|NOTE: We're still working on a process to support the application for loan forgiveness The earliest you can apply would be 8 weeks after loan disbursement. Check back for updates.|
For more information about Paycheck Protection Program loan forgiveness, please refer to HERE.
*The average number of full-time equivalent employees is determined by calculating the average number of full-time equivalent employees for each pay period falling within a month.
Regulations and guidance from the SBA and the U.S. Department of Treasury on the PPP are evolving rapidly, and the information contained herein be outdated. Please refer to the latest guidance from SBA and Treasury to confirm current program rules. The funding described in this email is made available to businesses located in the United States of America and are not available in other locations. This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.
Loan and forgiveness calculations and eligibility may vary. Refer to the SBA.gov for information about your particular situation.