CPA firm for businesses with PPP loans in California
As part of the Cares Act, a relief package proffered by the federal government, small businesses were given the opportunity to apply for PPP loans in an amount that would cover up to 2.5 months of payroll. The goal was for businesses to keep paying their employees until such time as it was safe to re-open. If you’re a business owner and were able to secure a PPP loan, you need to make sure you meet the forgiveness requirements.
First and foremost, you must apply for forgiveness, via form 3508, within 10 months of the end of the covered period. If you don’t meet this deadline, you’ll be required to start making payments of principal and interest on the loan. Most banks are not taking applications until the end of July because there are still some details to be worked out before the application process is in place.
Getting your PPP loan forgiven
As of the end of June 2020, the SBA reported there was still $134 billion in funding available from the original amount set aside through the Cares Act. In addition, they recognized that the COVID-19 pandemic was not slowing down across the country and has been hitting businesses harder than originally predicted.
Some amendments were made to try to help business owners weather the impact of the economic downturn. The covered period was increased to 24 weeks, and the deadline for applying for a loan was extended to August 8, 2020.
PPP loan forgiveness applications are still due within 10 months of the new covered period (24 weeks). Because the process has been changing as the effects of the pandemic continue to evolve, it’s best to work with a CPA firm. We can help you keep all the relevant documents in order and offer advice on PPP forgiveness.
Navigating the process
GYL offers a full array of CPA services for businesses, including helping our clients work through the COVID-19 pandemic. We can assist with getting PPP forgiven so that you can concentrate on keeping your business running.
If you need an accountant for PPP loans or any other financial need, contact our office for a free consultation.