The PPP Loan Forgiveness Portal is now open. The new application portal streamlines applications for loans that are $150,000 or less for more than 6.5 million businesses. … It enables business to apply for forgiveness directly through the SBA.
Likewise, can you go to jail for PPP loan?
If the lie on your PPP loan is counted as deceiving a financial institution to profit, then you can be charged with bank fraud under U.S. Code Title 18 U.S.C. 1344. … Typically, for an individual facing a misdemeanor for this crime, the bank fraud punishment can be up to one year in jail and up to $4000 in fines.
Also know, how do I get my PPP loan 100% forgiven?
You can qualify for full forgiveness if you meet these four criteria:
- Spend all of the funds on eligible expenses eight weeks after you receive the loan — eligible expenses include spending 60% of the loan on payroll and 40% on operating costs.
- Rehire all laid-off staff.
- Avoid other layoffs.
How do I make sure my PPP loan is forgiven?
Use the following tips on how to make sure your PPP loan is forgiven to get started:
- Use it for eligible expenses.
- Keep your employee headcount up*
- Don’t reduce an employee’s wages by more than 25%*
- Document everything.
- Talk with your lender.
- Apply for loan forgiveness.
Under normal circumstances, forgiven loan amounts are generally taxable for federal income tax purposes, but the CARES Act, under section 1106(i) of the act, expressly excludes the forgiveness of PPP loans from federal gross income, and thus federal income tax.
Missing the deadline will initiate monthly payments with interest. After the deadline, borrowers may still seek forgiveness up until their loan matures, which could be either two or five years.
• The Direct Forgiveness Portal allows PPP borrowers whose loans are $150,000 or less to apply for forgiveness directly to the SBA by submitting a simple pre-filled application.
For example, a borrower whose 24-week covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.