- PPP Loan Forgiveness Deadline – Don’t Miss It!
- Can you skip the wait for your Bank’s PPP Loan Forgiveness process? – SBA Launches New Direct Portal for Loan Forgiveness
- 2nd Draw PPP – SBA Introduces COVID Revenue Reduction Score
- Extension of Deferral now Possible for PPP Loans in Appeals Process
- IRS reviewing EIN status – Is your Organization’s information up to date?
- Form 990T Now Eligible for e-File!
Deadline for Forgiveness Applications Approaching for Many PPP First Draw Loans
The deadline to apply for forgiveness on Paycheck Protection Program (PPP) first draw loans is 10 months after the end of your covered period. The covered period is the 8-24 week period following the receipt of the loan. Be sure to determine your covered period and to make a timely application for forgiveness!
SBA PPP Direct Forgiveness Portal– If Your Lender opts In
The Small Business Administration (SBA) launched the SBA PPP Direct Forgiveness Portal. If your bank opts-in, and your loan is $150,000 or less, you will be able to submit your forgiveness application directly to the SBA, via their portal. Your lender will review your application and submit their forgiveness decision in the SBA portal. Note that if your lender does not opt-in, you must apply for forgiveness through your lender.
Resources: Lenders who have opted in | SBA User Guide
COVID Revenue Reduction Score
For PPP second draw loans, if revenue reduction information was not submitted at the time of application, and the loan is $150,000 or less, a COVID Revenue Reduction Score will be calculated by SBA taking into consideration information such as industry, geography, business size, data on the economic recovery and return of business to operational status.
If the score is at or above the SBA’s requirement for validation of revenue reduction, the revenue reduction requirement is met. If the score does not meet the SBA’s requirement, documentation of meeting the revenue reduction requirement will need to be provided.
Deferral of PPP Payments Extended for Loans Under Appeal
The new Interim Final Rule, (IFR) extends deferral of payment for loans in appeals process, until a final decision is made by the SBA, Office of Hearings and Appeals (OHA). This is applicable to a PPP loan for which the forgiveness decision has been appealed with the SBA’s OHA within 30 calendar days of the receipt of the SBA’s final decision, and requires the borrower to notify the lender of the appeal so the lender may extend the deferment.
Is your Organization’s Information Up-to-Date With the IRS?
The IRS requires reporting of the following changes within 60 days:
- Change in Responsible Party
- Change in Contact Information
These changes should be reported on Form 8822-B – “Change of Address or Responsible Party” The IRS indicates that outdated and incorrect information can delay the reporting of identity theft. The IRS plans to send letters to approximately 100,00 EIN holders whose information they believe may be out of date.
Form 990T: e-File It!
The federal Form 990T is now eligible for e-file. E-filing is highly recommended to circumvent the IRS’s backlogged mail queue.
DISCLAIMER: This newsletter is based on currently available information, which is subject to change. This newsletter is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Han Group LLC assumes no liability for actions taken in reliance upon the information contained herein.
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