Information About Paycheck Protection Program (PPP) Loan Forgiveness
We will provide you with the PPP loan forgiveness application with certain sections pre-filled for your convenience. It is your responsibility to ensure that all sections of the forgiveness application, including those pre-filled by Addition Financial, are correct. It is important to note that possible forgiveness of a PPP loan is subject to the discretion of the Small Business Administration (SBA), which approved PPP loans. Addition Financial cannot guarantee any particular outcome in securing forgiveness for all or a portion of PPP loan proceeds.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Any information provided here is subject to change.
For those of you who submitted PPP loan applications to Addition Financial, our plan is to continue to work with you through the process of applying to the SBA for forgiveness of all or a portion of your loan proceeds. Please be aware that any we cannot guarantee any particular outcome of the forgiveness process and cannot provide any assurances or representations that forgiveness will be granted by the SBA.
What you need to know about the forgiveness provision
Forgiveness is based on the employer maintaining or quickly rehiring furloughed employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
- Borrower must apply for forgiveness. Click here for the PPP loan forgiveness application.
- Forgiven indebtedness resulting from the PPP will not be viewed by the IRS as taxable income.
- Borrowers are eligible for loan forgiveness in an mount equal to the sum of payroll costs, mortgage interest payments, rent payments, and utilities during a "covered period." The definition of a covered period was amended by H.R. 7010 and is now defined as the earlier of a 24-week period beginning on the date of the loan origination or December 31, 2020. Borrowers that received a PPP loan before June 5, 2020 may elect to use an 8-week covered period.
- Treasury and SBA guidance requires 60% of forgiven amount to be used for payroll costs.
Business owners who have financial issues may apply for the Florida Small Business Emergency Loan Program: https://floridadisasterloan.org/application.