In readying for your PPP Loan Forgiveness Application Request it is My Understanding That…

In readying for your PPP Loan Forgiveness Application Request it is My Understanding that:

Payroll Processing fees are not part of the covered expenses and not eligible for forgiveness.

That any EIDL Loans are to be listed on the PPP Forgiveness Application and will offset the PPP loan amount eligible to be forgiven.

I suggest after your bank is ready to process PPP applications that you print it out and prepare a draft so I might review prior to its final submission.

It is my understanding the updated requirement that salaries be 60% of the total covered expenses does not limit the forgiven amount to 60% of the loan amount as it appears to do in the PPP Forgiveness Application Issued by the SBA. My present understanding of how PPP Forgiveness Amounts will be Calculated is rather that the 60% payroll cost is a requirement of total loan amount (i.e., if your loan amount is $30,000 that your payroll costs have to be at least $18,000 ($30K times 60%) in order that the $30,000 loan amount is able to be considered for forgiveness.

Please be reminded in latest PPP law update Congress allows you to select either a reporting period of 8 or 24 weeks (if you received your loan prior to June 5,2020) that you may submit your loan anytime during this time period being sure to maximize the amount of your PPP loan eligible for forgiveness within 30 days of the end of your reporting period. For loans after June 5, 2020 your reporting period is 24 weeks.

https://www.paychex.com/business-loans/loan-forgiveness-estimator