How to make sure your PPP loan is forgiven

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Many small business owners who have been approved for Paycheck Protection Program (“P3”) loans find that the loan is not as forgivable as they had hoped.

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The amount that a small business can claim for a rebate should consist primarily of labor costs. SBA regulations have stated that at least 75% of the pardon request must be salary costs, but may also contain up to 25% of other expenses approved under the law, such as rent, mortgage interest and utilities. This rule seems to be widely understood and as long as small business owners spend 75% of their P3 funds on payroll, this rule will not frustrate small business owners when it comes to forgiving. Unfortunately, there is an additional restriction on loan forgiveness applications that penalizes a small business if it does not bring back the same number of workers it had before the pandemic.

Watch our free on-demand webinar, as our experts, nationally respected tax attorneys Mark J. Kohler and Mat Sorensen walk you through the ins and outs of your P3 loan. Mark and Mat will look at the different ways you can make sure your P3 loan is canceled.

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