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If doing the paperwork to get your Check Protection Program (PPP) loan forgiven seems intimidating, help has come. A new online tool can simplify the process and won’t cost you a dime.
You can find the new PPP forgiveness platform at PPPForgivenessTool.com. Any company that applied for a PPP loan can use the tool for free, regardless of whether they worked with a bank or a non-bank lender. The American Institute of CPA (AICPA) and CPA.com launched the platform this week, which runs on software from small business lender Biz2Credit.
An easy way to start forgiving PPP loans
Business owners or their accountants can access a suite of loan aids on the platform, including the AICPA PPP Forgiveness Calculator, PPP Loan Forgiveness Application and all required mandatory government forms when submitting your application loan forgiveness.
You can even submit your application on the platform using an electronic signature, though the site recommends suspending your application until the federal government offers additional guidance on calculating PPP loan forgiveness.
“From the beginning [of the PPP]We have issued documents with our recommendations and suggestions on how loan forgiveness works, “says Erik Asgeirsson, president and CEO of CPA.com.” And now we have put it all into an application process. “
If you’ve been hesitant to apply for a PPP loan, the new tool could make the forgiveness application part of the process easier.
The PPP forgiveness tool will also incorporate the latest guidelines surrounding forgiveness as the U.S. Small Business Administration (SBA) and the Treasury Department publish it, Asgerisson says. From the site: “Once additional guidance is released, PPPForgivenessTool.com will be updated to reflect the new rules, and we will be contacting borrowers who have started applications on the tool.”
Until that happens, the site recommends that you do not submit your complete application.
PPP loan money is still available
Lenders have issued more than $ 517 billion in PPP loans to date to help small businesses struggling to stay solvent during the COVID-19 pandemic. According to SBA data, more than 51 million jobs were supported by PPP funds. While the initial round of funding of $ 349 billion ran out in less than two weeks, fewer companies were quick to claim a second round of $ 310 billion.
The complexity surrounding the requirements for PPP loan forgiveness, plus the extensive paperwork documenting eligibility, may have deterred some small business owners from applying. Despite the government’s relaxation of the forgiveness rules, more than $ 100 billion in APP funds remain unclaimed.
The PPP loan forgiveness terms state that at least 60% of the funds must be used for eligible payroll costs and must be used over a 24-week period. Although repayment of PPP loans for those not seeking or ineligible for forgiveness was extended to five years at an interest rate of 1%, and additional rules were published allowing partial loan forgiveness, the possibility of taking on More debt is unlikely to attract anyone who is struggling to keep their business running.
“Hopefully, this tool will also encourage people with the next phase of business relief to ensure that complexity in the process is not a reason not to get the assistance they need,” says Asgeirsson.
The government is still working out the details of what will come next in a second stimulus relief package. But Republican lawmakers and Senate Majority Leader Mitch McConnell began discussions this week about what might be included in the Republican proposal, indicating that additional aid to small businesses is likely to be part of any package.
