08/03/2021
It has come to my attention that many people are unaware of the true reason for the PPP.
PPP stands for Paycheck Protection Program that is a forgivable loan, that provides up to eight weeks of financial assistance to small businesses that maintain their payroll during the COVID-19 pandemic IF used to pay payroll.
The program provided small businesses with funds to pay for:
Up to eight weeks of payroll,
Benefits costs for employees, and
Interest on mortgages, rent, and utilities.
According to the SBA, in order to receive full loan forgiveness, you MUST use the funds for payroll costs, interest on mortgages, rent, and utilities with at least 60% of the forgiven amount going toward payroll.
PPP loans carry an interest rate of 1% on any unforgiven portion
Loans issued prior to June 5, 2020, have a maturity of two years, while loans issued after having a maturity of five years.
Loan payments will be deferred for six months
In short...If you received a PPP loan and can not prove 60% of the loan was used for payroll, please be ready to pay back the loan at an interest rate of 1%. This was not FREE money, but money to pay employees.
Bonus: We at Priority Tax and Referral Service currently offer Payroll services to clients that will provide the necessary documents for loan forgiveness. If interested, feel free to contact us for details @ 470-207-2811 ext 1. Or visit our website at www.prioritytaxandreferral.com
Take a look at our Home page. Priority Tax is a full service tax, accounting and business consulting firm located in Avondale Estates, GA.
