Self Employed Ppp Loan Forgiveness Guidance, Ppp Loan Forgiveness Application Updated 6 16 2020 C Brian Streig Cpa

This is everything we know based on information directly from the sba and the 19th interim final rule ifr filed on june 19th 2020.

Self employed resume for business owner. As self employed individuals who received a paycheck protection program ppp loan look forward to maximizing their loan forgiveness. Ppp loan forgiveness requirements for solos. Even if you are currently working at home now you are not eligible to claim home mortgage interest payments for forgiveness.

Given the fluid nature of the ppp program and the ambiguity that still exists around the process for applying for ppp loan forgiveness it is essential that self employed individuals who have participated in the program continue to monitor additional changes and keep track of ppp related expenses in order to maximize loan forgiveness and avoid unwelcome and unexpected repayment obligations next tax season. Repayment dates have been clarified. We created a comprehensive comprehensible guide all about ppp loan forgiveness for the self employed sole proprietors and independent contractors.

For sole proprietors or independent contractors with no employees the maximum possible ppp loan is therefore 20833 and the entire amount is automatically eligible for forgiveness as owner compensation replacement. The unpublished version of the update ensures full forgiveness for self employed freelancers and independent contractors who took the maximum loan amount based on 25 times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. If you are self employed but received a ppp loan through multiple businesses you are capped at 20833 in owner compensation across all the businesses youve received a ppp loan through.

We now have more clarity on the paycheck protection program ppp loan forgiveness for the self employed with no employees. The new law paycheck protection program flexibility act of 2020 creates a 24 week period for spending your ppp loan proceeds. A new simple streamlined application is available for certain loan recipients.

Forgiveness eligibility requirements have expanded for certain loan recipients. Ppp loan forgiveness application guidance for the self employed freelancers and contractors brian thompson senior contributor opinions expressed by forbes contributors are their own. The ppp limits compensation to an annualized salary of 100000.

Government clarifies ppp loan forgiveness for the self employed. Ppp self employed loan forgiveness as of 6102020 items noted with an will be updated once further guidance is provided related to hr. Below are some facts that are 100 sole proprietor specific and some that.

The sba has recently released new guidance on ppp loan forgiveness. If you have not yet read our previous post on the general information regarding the paycheck protection program loans click here.