- What are the new rules for PPP loan forgiveness?
- What is the covered period for PPP?
- Do I have to apply for PPP loan forgiveness?
- What are considered utilities expenses?
- What is included in transportation costs for PPP?
- How long do I have to apply for PPP forgiveness?
- How can I get my PPP loan forgiven?
- What documents do I need for PPP forgiveness?
- What does the IRS consider utilities?
- Can bonuses be included in PPP forgiveness?
- What utilities are covered under PPP?
- Is Garbage considered a utility for PPP?
- What qualifies for PPP forgiveness?
- What are examples of utilities?
- Is a cell phone considered a utility?
- How long do you have to apply for PPP forgiveness?
What are the new rules for PPP loan forgiveness?
To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks — the same parameters PPP1 had when it stopped accepting applications in August..
What is the covered period for PPP?
NOTE: The Covered Period for PPP loans is the 24-week period immediately following disbursement of the loan or a period ending on December 31, 2020, whichever is shorter. If you received your loan prior to June 5, 2020, you may choose the 8-week period following disbursement of your loan as your Covered Period.
Do I have to apply for PPP loan forgiveness?
Most Paycheck Protection Program (“PPP”) borrowers are working toward full forgiveness of their PPP loans and are anxious to get this process started. … But that does not mean a borrower should submit a loan forgiveness application as soon as possible.
What are considered utilities expenses?
Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage. The expenses are incurred over the course of the reporting period, calculated, and payment is rendered.
What is included in transportation costs for PPP?
“Transportation Costs” means transportation utility fees, not employee transportation costs like fuel. Under the CARES Act, forgivable uses of PPP funds include payroll costs, interest on any covered mortgage obligation, covered rent obligations and covered utility payments.
How long do I have to apply for PPP forgiveness?
You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.
How can I get my PPP loan forgiven?
For PPP loan forgiveness, you must use 100% of the loan for eligible expenses. Eligible expenses include payroll costs, interest on mortgages, rent, and utilities. And, the SBA requires you to use the majority of your loan for payroll expenses.
What documents do I need for PPP forgiveness?
For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).
What does the IRS consider utilities?
Housing and Utilities standards include mortgage or rent, property taxes, interest, insurance, maintenance, repairs, gas, electric, water, heating oil, garbage collection, residential telephone service, cell phone service, cable television, and Internet service.
Can bonuses be included in PPP forgiveness?
The IFR confirmed that PPP funds may be used to pay employee bonuses and hazard pay during the Covered (or Alternative Covered) Period and those amounts are eligible for forgiveness.
What utilities are covered under PPP?
The following are all considered forgivable utilities expenses for the PPP:Electricity.Water bill.Gas.Sewage.Telephone (cell phone and landline)Internet bill.Transportation costs.
Is Garbage considered a utility for PPP?
You can also use PPP money towards gas used when driving a business vehicle. Other common utilities such as garbage collection and security monitoring may also be classified as a utility but check with your lender. What Are The General Rules Around Loan Forgiveness?
What qualifies for PPP forgiveness?
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.
What are examples of utilities?
Utilities mean useful features, or something useful to the home such as electricity, gas, water, cable and telephone. Examples of utilities are brakes, gas caps and a steering wheel in a car. Examples of utilities are electricity and water.
Is a cell phone considered a utility?
There are a few different utilities that constitute as a utility bill these are, electricity, gas, water, home phone, mobile phone and broadband. All these services are classed as utility bills as they are products that make up the running of your household.
How long do you have to apply for PPP forgiveness?
The SBA has not set a deadline to apply for forgiveness, but you have 10 months after the end of your covered period before you’ll be required to start making monthly payments.