The PPP Thread

[James21]

More of a non-financial question but I am a part-owner of a dental practice and received the first PPP loan (and was extremely grateful to have it bridge the gap). I hadn't considered applying for the second PPP loan because at the time, our practice has been able to carry on relatively normally (with slightly increased overhead and slightly increased patient cancellations due to COVID or COVID-exposures). When we met with our accountant, he recommended we apply for the 2nd round of PPP because we would qualify with the 25% reduction in the second quarter. I feel a little odd applying for and receiving money that we don't technically "need" but would likely be entitled to through their qualifiers. Has anyone else run into this issue and how have you gone through it? On the flip side, I do expect that taxes, etc. will rise and I will ultimately be paying the money back (though along with everyone else who didn't also get a 2nd round of PPP funding).

[docnews]

I applied a few weeks ago for a 2nd draw. Haven't hard anything yet besides "no we have your application, everything is there". Not sure if I'll qualify in time.

It took sometime even though I applied as early as my online lender opened. Also they asked for more stuff later because of changes made by SBA, I believe.

[GastroMastro]

I applied a few weeks ago for a 2nd draw. Haven't hard anything yet besides "no we have your application, everything is there". Not sure if I'll qualify in time.

Go with another bank?

[Cubicle]

I applied a few weeks ago for a 2nd draw. Haven't hard anything yet besides "no we have your application, everything is there". Not sure if I'll qualify in time.

[GastroMastro]

Forgiven a while back for 1st round. Just got 2nd round funds. Anyone doing 2nd round? Only need a quarter to quarter comparison with 25% drop (for example my income for July/August/September in 2019 vs same months in 2020 was down like a third).

Same. I can only
hope forgiveness is just as easy, and just as tax free, the second time.

[docnews]

Forgiven a while back for 1st round. Just got 2nd round funds. Anyone doing 2nd round? Only need a quarter to quarter comparison with 25% drop (for example my income for July/August/September in 2019 vs same months in 2020 was down like a third).

[Rando]

Probably most people noticed already but for PPP round 1 loans 150k or less they now require only a one page form to request forgiveness, and you are not required to provide any info to the bank (though my bank did ask for some payroll info). You do need to hang on to your financial records for 6 years in case of audit.

I submitted the one page app to my bank a week ago and today received notice the loan was 100% forgiven, so good news!

[ananas]

Trump just signed. Does this mean another round of PPP? I did not apply first rounds, wondering if it's expected to re-open now that the new bill is signed.

[GasFIRE]

Finally!

https://www.cnbc.com/2020/12/21/covid-relief-bill-adds-ppp-tax-breaks-the-treasury-opposed.html

I took a chance and filed my forgiveness application last week. Looking forward to finally completing the process.

[EnjoyIt]

Has anyone that is a sole proprietor who is taxed as an S-corp submit their 3508EZ form yet? My bank (Chase) has an application process online and I want to make sure I am doing it accurately. Being the only employee of my corporation, that is paid over $100k/yr it looks like I can have the whole amount $20,833 forgiven. Also it looks like the only supporting documents that I may need are the form 941 and maybe 940 that shows I had 1 employee the whole time (me) and I paid myself the same as in 2019.

Am I missing something or have any of you needed to present other forms?

[jacoavlu]

we applied for forgiveness and I guess we'll let the CPAs figure the rest out

[zlandar]

Is anyone applying for forgiveness yet?

I submitted an application in late Sep and it was forgiven in early Nov. In retrospect it would have been better to wait until next year until the gubberment decides how they want to categorize the PPP money spent for tax purposes.

[childay]

Well, this kinda sucks:
https://www.forbes.com/sites/brianth...h=4e9f831aa528

I think I’ll wait until next year to apply for forgiveness.

Clear as mud?
I started the application but need to get some supporting documents rounded up

[GasFIRE]

Well, this kinda sucks:

https://www.forbes.com/sites/brianthompson1/2020/11/19/irs-clarifies-stance-on-no-deductibility-of-expenses-paid-with-ppp-funds/?sh=4e9f831aa528

I think I’ll wait until next year to apply for forgiveness.

[GasFIRE]

My lenders online forgiveness application is supposed to be available this month. I will likely delay completion until later in the year or even early next year. I want it forgiven but would like it even more if a law is passed that explicitly states that a forgiven PPP loan is not imputed income. I don’t think the IRS has backed off of this position yet.