The 8 weeks or 24 weeks after your first credit payment, (A) If you had a PPP loan prior to signing the Paycheck Protection Program Flexibility Act, you can use the initial 8-week period instead of the 24-week period. (See our guide to choosing an 8-week or 24-week period written by a CPA) Does that say a lot about when the funds can be used? Is it only after the loan date? Lenders are not required to verify or validate the borrower`s answers or supporting information on credit needs questionnaires, according to the SBA email. Here`s our comprehensive guide on how to adapt to debauchery. “We have previously recommended that [borrowers] keep simultaneous records of what a company was involved in anticipating and making at the time of the PPP loan,” said Barry Melancon, CPA, CGMA, President and CEO of the Association of International Certified Professional Accountants. “These recordings tell the story of uncertainty,” which is important to communicate alongside the necessary answers in form. It is a (poorly formulated) recitation of the general rule that cannot be used for the same purpose by sworn loans and PPP loans; If you use z.B the proceeds of a PPP loan for the payslip, you also cannot use an EIDL loan for the payslip. AICPA executives encouraged accountants to discuss with their clients or employers the presentation of simultaneous recordings explaining the borrower`s situation and thought process at the time of the borrower`s credit application. Loan applications will be processed by your lender. You must complete a P3 loan application form and submit it to your lender. The new forms are intended to collect additional information that SBA loan auditors will use to assess good faith borrowers who have been the subject of a PPP application that economic uncertainty has necessitate their application for credit to support ongoing transactions. Not sure you`re going with the 8-week or 24-week covered period? The main factors to consider are whether you are an independent person who receives compensation from the owner and whether you have sufficient eligible expenses to pay the credit.

Learn more about how a CPA breaks it down. Do you want to stay abreast of your pardon PPP loan? Download our free checklist today. Note: To grant your credit, you must complete a P3 application form for loan forgiveness. Take 10 minutes to read our sample method to complete your PPP Loan Forgiveness form. At least 60% of your loan must be used for salary costs. Payments to independent contractors cannot be included in salary costs. Your amount will be adjusted in proportion to the amount you spend on the payslip, up to the total amount of the credit. If you received your ppp loan before June 5, you can still use an 8-week period. During the 24 weeks of the PPP period, you spend $36,000 on your employees, more than your PPP loan. You`re claiming the $22,500 of your forgiveness loan. Eligible expenses are expenses made over a 24-week period, from the date the first payment was made by your lender. This is not necessarily the date you signed your loan agreement.

Good accounting and accounting are essential to make your credit – you must track expenses and associated documents for 24 weeks. Your lender will probably need these documents in digital form, so take the time to scan all the paper documents and keep backups of your digital records. In previous guidelines, the SBA stated that it would conduct credit audits for all P3 loans to borrowers who, together with their related companies, received $2 million or more in P3 funds.