The Best Reason to Wait to Submit a PPP Loan Forgiveness Application

    The Paycheck Protection Program (PPP) has been a very useful tool to help many businesses stay open during these challenging times. However, there are many questions surrounding when is the best time to submit the applications for forgiveness of these loans. There are different ideas, but this series of posts has shed some light on what to do in different situations.

    This post will give the best reason why a borrower might want to wait to submit their application. Some businesses have potential forgiveness reductions. Our last post discussed how fewer full-time employees or reductions in salary would impact the qualified expenses that could be claimed.

    It may be best for some of these businesses to wait until after December 31 to file their applications to see if they were able to restore any of their employees and/or salaries. That would allow them to qualify for what are known as Safe Harbors and not have to reduce their forgiveness amounts. Applying too early might disqualify them. Again, there are many questions regarding PPP loan forgiveness and new information continues to be provided. A trusted, Qualified Tax Professional is absolutely necessary at this time.

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