November 1, 2021
It seems only right with Halloween still fresh in my mind that I try to scare you just a little bit. That’s right, not only am I resurrecting discussion of the Paycheck Protection Program, I am also going to talk about common mistakes on the forgiveness application. If the thought of not getting your loan funds forgiven makes you shriek in fear, read on for some things to keep in mind as you submit your application.
First off, if you received a second draw loan, you might still be in your 8-24 week covered period. Don’t apply too soon! The easiest way to get forgiveness is to maximize the payroll deduction, so even if you have other expenses that qualify, you might want to consider waiting until your payroll amount reaches the full 60% of the loan amount.
Second, don’t miss the deadline to apply! Once your covered period ends, you have 10 months to apply for forgiveness before you need to start making payments. You can still apply after the 10 months have elapsed, but you will be making payments during that time.
Another common mistake reported is submitting the cost of your business-related mortgage, which is not an allowable expense. Mortgage interest, however, along with rent and lease payments, are accepted as long as they are business related. Pay close attention to how you categorize these and other expenses such as utilities. There are many categories for non-payroll expenses, and everything submitted must be properly categorized.
Finally, and this seems simple, but even I can attest to the number of times I have accidentally hit the wrong key: double check your SBA or lender loan number.
Perhaps the scariest thing I can say is that if you do make mistakes on your application, you cannot amend it. But, once you get a decision, you can appeal it.
If you have any questions, check out the SBA’s PPP Forgivenes or FAQ page. Still have questions? Reach out! I am happy to help you navigate your application in between eating the candy tax I collected from my kids. As always, if anything changes, I will let you know right away, so be sure to like my Facebook page or follow me on Instagram for the latest updates as soon as I have them!
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