As you might be aware some banks and financial institutions are opening their PPP forgiveness application intake. Note that after the PPP period of 24 weeks, there is a 10 month period of no interest so we recommend filing the forgiveness during the period.
Currently, there are still some moving pieces and there is the potential forgiveness of PPP loans under $150k requested by legislators as it is around 80% of the number of total applications and represents around 25% of the dollar amount. The financial institutions would rather avoid administrative cost (employees time, client portal, software updates, legal liability, etc.) if automatically waived for PPP amounts up to $150k.
Our recommendation to our clients is to fill for the PPP forgiveness after the deadline, especially if you can take advantage of the short form EZ (three pages)
Link SBA Forgiveness EZ form –https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf
For the last weeks, we have been performing PPP forgiveness analysis to our clients to make sure that they meet all the requirements or that they will meet the requirements before the end of the 24 weeks. In some cases, a little planning allows the business owner to meet the requirements and obtain full forgiveness.
Based on the end date of the PPP period, you should apply to the forgiveness any CPA, EA or tax professional might be more available to help in this process in November or December than during the 2021 tax season (January to April 2021).
Forbes article – https://www.forbes.com/sites/brianthompson1/2020/09/21/ppp-forgiveness-applications-are-opening-up-should-you-apply/#6ad59a2f2cc0