Question: What Is The PPP Safe Harbor Deadline?

What is safe harbor for PPP forgiveness?

If the average annual wage or salary as of December 31, 2020 or your loan forgiveness application date (whichever is earlier) is equal to or more than the annual wage or salary as of February 15, 2020, the safe harbor applies..

How do you calculate PPP forgiveness?

PPP forgiveness calculationCalculate payroll and non-payroll costs. Line 1: Payroll costs. … Make adjustments for full-time equivalency* (FTE) and salary/hourly wage reductions. Line 5: Total salary/hourly wage reduction of more than 25% … Calculate potential forgiveness amounts. Line 8: Modified total (line 6 X line 7) … Arrive at the forgiveness amount.

How long do you have to apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

How does the 24 week PPP work?

If 24 weeks, it begins on the date the loan proceeds are disbursed and ends 24 weeks (168 days) from that date. Alternative Period – Borrowers with a bi-weekly or more frequent payroll schedule may elect the Alternative Period.

Is the PPP loan being extended?

This bipartisan legislation extends the application deadline for PPP loans to August 8th. … The bill would extend the application deadline for initial PPP loans from June 30 to December 30, or longer, at the discretion of the Small Business Administration (SBA), and would use existing PPP funding to make P4 loans.

What is the max salary for PPP?

In addition to the specific caps described below, the amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at $20,833 per individual in total across all businesses in which he or she has an ownership stake.

What documents are needed 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 are the rules for PPP loan 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.

How many weeks do you have to use the PPP?

The eight-week period to use your PPP funds has now been extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.

How long does SBA have to approve PPP loan forgiveness?

90 days“We have ones that just went in a couple days ago that just came back and others at 90 days that have not,” he said, referring to the SBA’s 90-day statutory deadline under which it must review and approve PPP loan forgiveness determinations submitted by lenders.

What is the PPP safe harbor?

Under the new safe harbor, if a borrower, together with its affiliates (to the extent required under the interim final rule on affiliates), received PPP loans with an original principal amount of less than $2 million, the borrower “will be deemed to have made the required certification concerning the necessity of the …

What is the deadline to use PPP funds?

August 8Paycheck Protection Program Deadline Is August 8: Applying, Loan Forgiveness, And The New PPP. Small businesses still have until August 8 to apply for potentially forgivable loans via the Paycheck Protection Program (PPP), which was extended from its original June 30 deadline.

What happens after the 8 weeks of PPP?

Under the original law, small businesses who received a PPP loan had eight weeks to use the funds, and so long as they used the loan proceeds for qualifying purposes, the entire loan could be forgiven. … Under the new law, the eight-week period was extended to 24 weeks or December 31, 2020, whichever is first.

How much of PPP is forgiven?

Participants are eligible for loan forgiveness for the amounts spent on authorized expenses over 24 weeks after loan disbursement (or eight weeks if they choose). Total payments for payroll may be forgivable. Mortgage interest, rent and utilities are also forgivable, up to 40% of the PPP loan.