Like the weather in Montana this time of year, the guidance for completing the PPP Loan Forgiveness Application seems to change every few minutes and as a caveat to the information below, this might continue.
The good news is that the changes made on June 17th have simplified the application for sole proprietors and businesses that did not cut salary and wages by more than 25%. The changes lengthen from eight weeks to 24 the time that businesses have to use PPP funds and still qualify for forgiveness. Now 40% of the loan can be used for rent and certain other non-payroll expenses, up from the original 25%.
All that being said, the application process can still be complicated and if you have a variety of scenarios with different employees, it will take time to sift through the details. Luckily, business owners do not have to go it alone. In Montana, economic development organizations are prepared to assist you. Prospera Business Network and the Montana Women’s Business Center have created a self-paced, online class that breaks down the application process for PPP Loan Forgiveness into bite-sized pieces and paired it with online classes where you can ask questions and customize the information to cover your specific situation. Quickly evaluate if you qualify to use the 3508EZ form to apply for loan forgiveness, and if not, use the tutorial to walk through the Schedule A Worksheet, Schedule A and 3508 Loan Forgiveness form before you submit the documentation to your lender.
The online tutorial gives you a list of documents that you will need to complete either the 3508 or 3508EZ form. You will need to decide whether you have used the loan funds quickly enough to qualify for loan forgiveness in the initial 8 weeks or if you will need an extended time period of up to 24 weeks to qualify. Businesses can submit their applications for forgiveness to their lenders as soon as they qualify and do not need to wait the entire 24 weeks.
In these uncertain times, we could all use a little clarity. We hope that the PPP Loan Forgiveness tutorial and class simplifies one of the unusual tasks that business owners must tackle in 2020.
Guest Post by: Kim Morisaki