COVID-19: Banks Share Preparedness Updates for PPP Loan Forgiveness

Banks have started to announce their plans for accepting PPP Forgiveness requests in the coming weeks and, in preparation, have laid out a series of important tasks for you to complete ahead of the process.

 

Pre-Request Tasks:

  • Determine the right form: View the SBA’s Checklist for Using SBA Form 3508EZ to see if you can use the simpler Form 3508EZ.
  • Select your Covered Period: Choose the 24-week Covered Period or Alternative Payroll Covered Period (if applicable) as the timeframe for your incurred or paid payroll costs. If you were funded before June 5, you can choose to use the 8-week or 24-week period.
  • Calculate your payroll costs: Use Tables 1 and 2 from the Schedule A Worksheet located within the PPP Loan Forgiveness Application Form 3508 as your guide.
    • If using Form 3508, complete the entire PPP Schedule A Worksheet. The Schedule A Worksheet starts on page 4 of the PPP Loan Forgiveness Application Form 3508.
    • Don’t worry that the Worksheet asks for standard PPP loan information. When it’s time to request Forgiveness, your bank will fill in:
      • SBA PPP loan number
      • Chase PPP loan number
      • Funded PPP loan amount
      • PPP loan funding date
    • Gather documents: Prepare documents to show how you spent funds during the Covered Period or Alternative Payroll Covered Period. If seeking full Forgiveness, at least 60% of your Forgiveness request amount must be for eligible payroll costs and up to 40% can be for eligible non-payroll costs.

 

ABOUT CAROPRESE & COMPANY

Caroprese & Company is a certified public accounting firm that provides innovative and strategic services to a diverse client base of individuals, families, small and medium size businesses, government entities, non-profits and multi-national corporations. Our dynamic professionals perform at a high intensity and are laser focused on providing excellence to our global clientele.

 

CONTACTING CAROPRESE & COMPANY

This publication is provided by Caroprese & Company as a service to its clients and colleagues.  The information and content included in this publication should not be construed as technical advice.  Questions regarding any matters discussed in this publication should be directed to Brandon Caroprese whose contact information is listed below:

Brandon Caroprese, CPA, MST
Tel. (973)-475-8090
Email. bcaroprese@caroprese.co

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