How comfortable do you feel about your compliance with the PPP loan requirements? That is a personal decision.
In my case, I and a client were comfortable reporting PPP loan as nontaxable income in February. I am told that the bank has finally approved our application (submitted last July) but I have yet to see the paperwork.
The US Chamber of Commerce states:
A PPP loan can be forgiven as long as at least 60% has been spent on employee payroll costs. The other 40% of funds are allowed to be used for expenses, including mortgage interest or rent obligations; utility costs; operations costs such as business and accounting software; uninsured property damage from civil unrest; supplier costs on essential goods; and worker protection expenditures such as personal protective equipment (PPE).
Forgiveness is based on employers continuing to pay employees at normal levels for a period between eight and 24 weeks following the loan’s origination. The Treasury Department released multiple PPP Loan Forgiveness Applications, which must be filled out by businesses seeking forgiveness and then submitted to the private lender from which they obtained the loan. All companies that have accepted a PPP loan or are considering a PPP loan should closely examine the application to make sure they are compliant.
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