Learn what you can do to help get some or all of your funds from the Paycheck Protection Program loan forgiven.
Note: The SBA released new guidance on loan forgiveness on January 19, 2021. 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 your Covered Period following loan disbursement.
|Note: You may apply for loan forgiveness after your Covered 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 60% 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 your Covered Period are eligible for forgiveness. Your Covered Period is either (1) the 24-week period following the disbursement of your loan, or (2) if you received your PPP loan before June 5, 2020, you may elect to use an 8-week Covered Period following the disbursement of your loan. Costs incurred after the Covered Period are not forgivable.
If you’re unable to meet the requirements for full 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 your Covered Period, 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 Covered Period following disbursement of the loan.
- Mortgage interest payments in the Covered Period following disbursement of the loan.
- Rent or lease payments in the Covered Period following disbursement of the loan.
- Utility payments in the Covered Period following disbursement of the loan.
- Covered operations expenditures
- Covered property damage costs
- Covered vendor costs
- Any advance received under the CARES Act EIDL Emergency Grant program.
|NOTE: Our team is diligently working to provide a user-friendly online forgiveness experience soon that complies with the quickly evolving guidance from the SBA.|
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.