COVID-19 SBA PPP Loan Forgiveness Assistance

Borrower Verification and Compliance Assistance

Why You May Want to Wait to File for PPP Loan Forgiveness

Guidance May Evolve: Because of the constantly evolving guidance with respect to loan forgiveness, borrowers should consider waiting before they file their loan forgiveness applications. New interim final rules are coming out and further pandemic aid bills are still being introduced into Congress, hurrying up the process of filing for loan forgiveness might not be warranted if the forgiveness landscape continues to change.

More Guidance Is Expected: We are expecting more guidance in a number of areas. Some guidance was posted in August and October 2020 (see links below) and related to owner-employee compensation, the eligibility of nonpayroll costs, certain calculations for reductions in employee salary or hourly wages, and borrower submission of excess costs. But gray areas remain. If any of these gray areas are critical for a borrower’s loan forgiveness, the borrower might want to consider waiting for additional guidance. On August 4 and 11, 2020, the SBA posted 11 pages of guidance—the Frequently Asked Questions (FAQs) on PPP Loan Forgiveness—and updated the Interim Final Rule on Appeals of SBA Loan Review Decisions under the PPP, and on August 24, 2020, it posted the Interim Final Rule on Treatment of Owners and Forgiveness of Certain Nonpayroll Costs; and on October 8, 2020, it posted Interim Final Rule on Additional Revisions to Loan Forgiveness and Loan Review Procedures Interim Rules.  We expect more guidance.

To schedule your appointment, please call our office and our receptionist will assist with scheduling your initial consultation. (805) 495-4211

Steven Z. Freeman, CPA and the staff at Freeman and Associates provides Business Services, Tax Planning, Entity Formation plus Maintenance, and Accounting Services and can assist you with these services. If you have any questions on this matter, or to schedule an initial consultation

Please contact us at (805) 495-4211 or Steve@FreemanAssoc.net

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