How to Get Your PPP Loan Forgiven

If you’re one of the many small business owners who have taken out a PPP loan , you’re probably wondering how you can get it forgiven. Here’s a quick guide on what you need to do.

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What is PPP Loan Forgiveness?

What are the requirements for PPP Loan Forgiveness?

In order to have your PPP Loan forgiven, you must meet certain requirements.
-You must have used the loan for its intended purpose, which is to cover payroll and other qualifying expenses like rent, mortgage interest, or utilities.
-You must have used at least 60% of the loan for payroll costs.
-You must have paid your employees throughout the covered period.
-You must have maintained your employee headcount and salary levels.
-You must comply with all other SBA guidelines for PPP Loans.
If you do not meet all of these requirements, you may still be eligible for partial loan forgiveness.

What are the different types of PPP Loans?

There are two types of PPP Loans: First Draw PPP Loans and Second Draw PPP Loans.
First Draw PPP Loans are for businesses that did not receive a PPP Loan in 2020.
Second Draw PPP Loans are for businesses that previously received a PPP Loan and will use the full amount only for authorized uses.

How to Get Your PPP Loan Forgiven

If you’re a small business owner who has taken out a Paycheck Protection Program (PPP) loan, you may be wondering if there’s a way to get the loan forgiven. The PPP loan forgiveness process can be a bit complicated, but we’ll walk you through it step-by-step so that you know what to expect.

Follow the SBA’s PPP Loan Forgiveness Application Instructions

Now that the Paycheck Protection Program (PPP) loan forgiveness application is available, small business owners who took out loans through the program can begin the forgiveness process.

The Small Business Administration (SBA) released the long-awaited PPP loan forgiveness application on May 15, 2020. The form and accompanying instructions provide borrowers with clear guidance on how to calculate their loan forgiveness amount.

Borrowers can begin the forgiveness process by completing and submitting the PPP Loan Forgiveness Application to their lender. Lenders have 90 days to review and approve the application, and borrowers will have to make any required repayments within that time frame.

The SBA has also created a new online tool to help borrowers track their loan forgiveness progress. This tool will be available in early June and will allow borrowers to check the status of their applications, submit supporting documentation, and contact their lenders if they have any questions.

To learn more about how to get your PPP loan forgiven, read our comprehensive guide or visit the SBA’s website.

Include all required documentation

To have your PPP loan forgiven, you must submit documentation to your lender that includes:
-Your loan forgiveness application
– Your most recent tax return
– Your most recent interim financial statements or profit and loss statement
– Documentation verifying your payroll expenses
– Documentation of any other eligible non-payroll expenses

Your lender will review your documentation and determine if you are eligible for loan forgiveness.

Get your employer’s certification

In order to get your PPP loan forgiven, you’ll need to get your employer’s certification. This certification will state that you are an eligible employee for the PPP loan program. To get this certification, you’ll need to fill out a form and submit it to your employer.

Your employer will then review the form and decide whether or not you’re eligible for the loan. If your employer decides that you are eligible, they will then sign the form and return it to you. Once you have this form, you can then apply for a PPP loan.

What to do if You’re Denied PPP Loan Forgiveness

The Paycheck Protection Program (PPP) loan forgiveness process can be confusing and many small business owners are still waiting to hear if their loan will be forgiven. If you’ve been denied PPP loan forgiveness, there are a few options you can explore. You can appeal the decision or apply for a new loan. You can also try to negotiate with your lender.

Check for errors in your application

If you’re certain you should have been granted loan forgiveness, your first step is to check for errors in your application. The SBA has specific guidelines that lenders must follow when processing forgiveness applications, so it’s possible that your lender made a mistake.

If you find any errors, reach out to your lender and ask them to correct the mistake. You should also reach out to the SBA if you have evidence that your lender didn’t follow the proper procedures.

Appeal the decision

If you believe you should have been granted loan forgiveness, you can contact your bank or the SBA to appeal the decision. The SBA will review your application and make a determination. If the SBA agrees that you should have been granted loan forgiveness, they will instruct your lender to forgive the loan.

Negotiate with your lender

If you think the SBA made a mistake in denying your PPP loan forgiveness, you have the right to appeal the decision. You can do this by sending a formal appeal to your lender.

Your appeal should include:

-A explanation of why you disagree with the SBA’s decision
-Any supporting documentation that you have
-Your contact information

Once your lender receives your appeal, they will have 30 days to respond. If they agree with your appeal, they will send your case back to the SBA for reconsideration. If they don’t agree with your appeal, you can then take your case to the SBA’s Office of Hearings and Appeals.