Self Employed Ppp Loan Forgiveness 24 Weeks, Sba Finally Clarifies Ppp Loan Forgiveness Rules Full Forgiveness For Self Employed Borrowers

However borrowers whose loans were made before june 5 have the option of using a covered period of either 8 weeks or 24 weeks.

Self employed limited company. Self employed with no employees can spend the full 20833 as owner compensation replacement and it will be eligible for 100 forgiveness if proper documentation is provided with ppp forgiveness application. Use the 2512 method of 2019 net profit up to 20833 which is 100 forgiven. Full 100 loan forgiveness.

This is everything we know based on information directly from the sba and the 19th interim final rule ifr filed on june 19th 2020. The 24 week window based on an individual reporting 50000 of self employment income on their 2019 tax return with no overhead expenses. New easy road to 100 percent forgiveness.

If you dont have any eligible business expenses you can use the ppp funds for the remaining balance of the loan will need to be repaid according to the ppp loan terms. On june 7 the payroll protection program flexibility act was passed into law extending the covered period in which borrowers can use payroll protection program ppp loan proceeds from eight weeks to 24 weeks. The unpublished version of the update ensures full forgiveness for self employed freelancers and independent contractors who took the maximum loan amount based on 25 times their 2019 monthly income.

One of the biggest changes was to the eight week forgiveness period. Here is an example of the potential difference in ppp loan forgiveness using the eight week window vs. Say thanks to the paycheck protection program flexibility act of 2020.

I dont have any other business expenses i can claim for forgiveness. We now have both the new clarity and an easy road to paycheck protection program ppp loan forgiveness for the self employed with no employees. This applies to ppp loans using a 24 week covered period.

Can i still apply for forgiveness after 8 weeks 56 days and apply for the full 25 months forgiveness or. The ppp loan forgiveness extension may help the self employed. This new law creates a 24 week period for you to spend your ppp loan proceeds.

Loan forgiveness is also subject to a reduction if average fte levels during the covered period are less than average fte levels of the comparative period selected by the borrower either february 15. If you were assigned a ppp loan number on or before june 5 2020 you now have the option of taking 24 weeks to spend the funds instead of eight weeks.