JamesG1 - it is not interest - and should not be reported as such. You are correct it is reconciled on Schedule M-1, but I recommend writing in on the line Permanent Items:Other Permanent Income Items - PPP and/or EIDL loan forgiveness. HOWEVER., I also recommend waiting until 2021 to report the loan forgiveness just in case the loan is not 100% forgiven. And, also watch out for state - not all states are complying with IRS
