NEW PPP Forgiveness
Wait to File!
On December 21, Congress passed legislation significantly affecting the PPP. The bill has been sent to be signed by the President. We are closely monitoring the situation in Washington and will continue to share specific information as we have it.
When released, we will follow the Small Business Administration (SBA)βs updated guidance for the program. The description below reflects our best understanding of the current bill, but please consult your accountant or legal counsel on how the new rules may impact your business.
Impacts to PPP forgiveness
This bill includes:
- A streamlined forgiveness process for loans of $150,000 or less
- Additional covered expense categories: covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures
- Repeal of the rule requiring the SBA to deduct any EIDL advance amount from PPP loan forgiveness
- Flexibility in the covered period from 8 to 24 weeks after origination
While we donβt yet know how or when the SBA will enact these changes to the forgiveness process, we expect them to release updated guidance in the coming days and weeks.
What does this mean for you?
We are temporarily closing our forgiveness application portal to new applications as we address the new program rules. We expect the closure may last several weeks.
- If you have not yet submitted your forgiveness application to U.S. Bank: You will not be able to start, continue, or update an application until we reflect the updated guidelines and re-open the portal. At that time, those who have already begun applications may have to restart or modify their application to meet the new rules.
- If your forgiveness application is under review by U.S. Bank: There is no further action needed on your part at this time. We will contact you as soon as we know more about your next steps. You may have the opportunity to continue or withdraw your application and re-apply under the new guidelines, depending on your situation.
- If you have received a final SBA decision with your final forgiveness amount: We are awaiting guidance on how the new legislation may affect loans already forgiven and/or paid in full. We will update you with that guidance when we know more.
New funding for PPP loans
The legislation also authorizes a new round of PPP funding. Approximately $285 billion has been set aside for additional lending, and eligible businesses will be able to request a second round of funding through the program.
U.S. Bank plans to restart our PPP loan program under the new rules. We will communicate eligibility requirements, the application process, and how to begin preparing, once we receive further guidance from the SBA.
One thing for certain, is we will be on top of it to help you realize the most assistance possible. We will be reaching out soon again.
KJ Tax, AOS and QBO Hero, LLC and it's team are very thankful and grateful for the opportunity to serve you. We understand the struggles and successes of life. We want to help you get through the hard times and celebrate the good times to come.
Please reach out to Lisa Filicetti, Executive Assistant, 262-514-3800 if you have any further questions regarding your account. She will be certain to get you connected to one of our specialized team members to help you.
From all of us at KJ Tax & Accounting, LLC, thank you for your continued business and trust. This means the world to us and our families. Stay safe and warm throughout the holiday season. God please Bless America.
Yours Truly.
James N Filicetti, CPA
The Helpful KJ Tax & Accounting Team
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