First and foremost, businesses must apply for Payment Protection Program loan forgiveness. Start by submitting a request to the lender that is servicing your loan. Unfortunately, the SBA Forgiveness Application is complicated. It is part form, part worksheet, and requires some complicated calculations. Further complicating the matter, the IRS announced that small businesses cannot deduct payroll and other covered expenses if they were paid using PPP funds—ultimately resulting in a larger tax bill and in some cases, negating the benefits of the loan.
Congress has potential legislation in the works that may revise how the IRS treats PPP loans, and there is speculation that lawmakers are trying to make significant changes to the PPP, including giving businesses more flexibility to spend the money and more time to do so.
Right now, there are many rules that are subject to change. However, it is still in your best interest to be prepared to apply for forgiveness. We’re happy to provide this set of additional instructions when filling out your SBA Forgiveness Application.
If you have questions, contact the Experts at Henssler Financial:
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- Phone: 770-429-9166
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