Paycheck Protection Program (PPP) Learn more about how to get help with your PPP loan. Borrowers who need assistance with direct forgiveness can contact SBA at our dedicated forgiveness call center: 877-552-2692. The call center is open Monday through Friday, 8:00 a.m. to 8:00 p.m. ET.

How will PPP loans be treated for tax purposes?

Ordinarily, a forgiven loan qualifies as income. However, Congress chose to exempt forgiven PPP loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both.

What are the tax ramifications of a PPP loan?

Forgiven PPP loans are not taxable Congress specified, and the IRS clarified, that forgiven PPP loans will not count as income. This applies whether your entire loan is forgiven or just a portion. “If it is forgiven, it will not be taxable income.

Which PPP loans will be audited?

The Small Business Administration (“SBA”) has announced it will audit all PPP loans in excess of two million dollars following a lender’s submission of a borrower’s loan forgiveness application, and it reserves the right to “spot check” any PPP loan of a lesser amount at its discretion.

What’s the interest rate on a PPP loan?

PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. Loan payments will be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

How to get a PPP loan from SBA?

SBA is currently offering PPP loans until May 31, 2021. President Biden announced program changes to make access to PPP loans more equitable. 1. Find a lender: Get matched with a lender; Search for lenders in your area; 2. Identify a loan: First Draw PPP loans: If you have not received a PPP loan before, First Draw PPP loans are available to you.

Who is eligible for a first draw PPP loan?

First Draw PPP loans: If you have not received a PPP loan before, First Draw PPP loans are available to you. Second Draw PPP loans: If you have previously received a PPP loan, certain businesses are eligible for a Second Draw PPP loan. SBA also offers additional COVID-19 relief options.

Who is eligible for Paycheck Protection Program loan forgiveness?

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness.