June 14, 2021 Editor’s Note: Thank you for viewing this resource about the Paycheck Protection Program (PPP). This was a cornerstone for many organizations during the COVID-19 pandemic, but it’s important to stay current on the latest financial support options. Like PPP, the Employee Retention Credit (ERC) can be leveraged to bring your business significant financial relief. We invite you to dive into our ERC content here. Need professional advice on maximizing your ERC benefits? Learn more about our Employee Retention Credit consulting services and then contact us. As a reminder, if you received a PPP loan in 2020, you should consider applying for loan forgiveness now. For PPP loans received in 2021, the earliest you can apply for loan forgiveness is 8 weeks from your loan funding date. We strongly encourage you to apply for PPP loan forgiveness at the end of your covered period to avoid having to make payments on the portion of your loan that may be forgiven. The first PPP loan payments are due 10 months after the end of your covered period. For example, if you received a PPP loan on April 17, 2020, your 24-week covered period ended on October 1, 2020 and your first loan payment will be due on August 1, 2021. Your bank will need time to process your application so the time to apply is now. Before you apply for loan forgiveness: 1. Determine if you’re eligible to apply Loan forgiveness requires that you apply after your covered period and that your loan funds are used for eligible costs. 2. Determine which forgiveness application you will complete The SBA provides 3 different versions of the PPP loan forgiveness application form. Work with your CPA or Bank to determine which is right for your situation. 3. Gather your documents There are specific documents you’ll need to retain and/or submit for your application. If you plan to start gathering documentation on your own, here’s what you may need: Payroll Documents Full-time Equivalent (FTE) Documents Non-payroll Documents How Can KatzAbosch Help? Each borrower has their own individual set of circumstances, and the answers are not always clear. If you have questions about your situation, please reach out to your KatzAbosch representative or contact us by clicking here. To learn more about our PPP services, click here. Related KatzAbosch Articles Should I Apply Now for PPP Loan Forgiveness? New PPP Loan Forgiveness Form 3508 S To Simplify Forgiveness Process for Small Businesses Why would a company apply for PPP loan forgiveness before the end of their covered period?
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