This year PPP and EIDL loans provided many businesses with some breathing room and the ability to start over. Now the opportunity for loan forgiveness may provide additional relief, but you must ask for it.
Here are some key tips to keep in mind:
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Currently, the process is to begin by working with your lending institution. A number of lenders are already open for the forgiveness process, if yours isn’t yet, check frequently as to the status.
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Your lender has up to 60 days to review your forgiveness application, and then it moves on to the SBA, which has an additional 90 days to evaluate your application.
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There are three forms available for submission, make sure the form you choose matches your loan amount and employee count.
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Documentation of covered expenses and especially payroll costs is critical. To be eligible for full forgiveness at least 60% of your loan must have been used for payroll costs.
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Eligible expenses are those that are incurred starting from the first loan payment made by the lender and covering the next 24 weeks.
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Maintain open lines of communication with your lender throughout the forgiveness process.
The good news is you don’t have to organize all of your documentation and reporting alone. BKE has been helping thousands of businesses like yours get their bookkeeping organized, caught up and reported in the formats they need most. For more information on how we can help, schedule a time to talk here.