It’s been quite a year. AAs COVID-19 swept through the country, small businesses owners everywhere were forced to rethink how they do business and quickly adapt to the dramatically changing economy.
WIth a myriad of assistance options available through the Small Business Administration (SBA), you might be among those small business owners who’ve been able to keep your business going.
One way you might have benefited was through the Paycheck Protection Program (PPP) loan. This loan is helping businesses to keep their employees on the payroll.
If you’ve already applied for and received your money from the PPP, you might be ready to pursue loan forgiveness. While you still need to complete applications and meet a range of requirements, you now have a choice of options—including paper application, electronically, or through software created by small business lender Biz2Credit.
Here’s everything you need to know about pursuing PPP loan forgiveness.
Who qualifies for PPP loan forgiveness?
If you have used your loan for at least 60 percent of your payroll, interest on mortgages, rent and utilities—you may qualify for loan forgiveness.
The loan forgiveness application process helps employers to calculate payroll costs. Loan forgiveness is based on the employer maintaining (or rehiring) employees and maintaining salary levels. If employee salary levels decrease, the amount of the loan forgiven might be reduced.
Businesses can check the SBA’s Frequently Asked Questions about PPP loan forgiveness here to learn more about how to qualify for loan forgiveness, and for how much.
How do you apply?
There are now several ways to apply for PPP loan forgiveness.
One option is to submit a regular paper application to your lender. This application process helps calculate exactly where you’ve allocated your loan, and over what time frame. This is all taken into account for qualification and may qualify you for partial loan forgiveness.
You can also submit the form electronically. This is a slightly easier option but can still get a little clunky with all the paperwork and details needed to be gathered and submitted.
Luckily, there is an even easier way to apply for PPP loan forgiveness.
The American Institute of CPAs (AICPA) and CPA.com recently launched an online tool developed by small business lender Biz2Credit. This tool is intended to make the loan forgiveness application process simple and straightforward by immediately calculating forgiveness eligibility and providing all forms required to complete your application.
Moving forward with your PPP loan forgiveness application
Are you ready to apply for PPP loan forgiveness?
Growth Capital is committed to helping our clients not only consider all loan options available, but also how to apply for loan forgiveness and access the best tools the SBA offers so small business owners can thrive. Contact us for support on your PPP loan forgiveness application.
Have questions or need help applying for your small business loan forgiveness application? Trust the experts at Growth Capital to assist your company throughout the process. Contact us today at (216) 592-2332 or send us a message online.