Q: Has the SBA issued a timetable for recipients to file their application for determining forgiveness of the PPP money?
A: The SBA has issued forms and guidance for a borrower to file an application for forgiveness. However, we suggest that you hold off on filling out the form for the following reasons:
- Depending on your situation, you may be able to use the 8 week or 24 week time period (“Covered Period”). Most businesses will want to use the 24 week Covered Period. A borrower has up to 10 months from the end of the Covered Period to file an application for forgiveness. Additionally, Congress comes back from recess next week and will start the work on drafting a compromise to the HEROES Act and the Senate version of the stimulus bill. There is a reasonable chance that there will be some additional PPP legislation as well. We are monitoring the situation to see if there is actionable legislation, as well as potential changes to the forgiveness application.
Q: Has a determination been made as to the deductibility of the expenses paid with that money?
A: As of right now, the expenses paid with the PPP money are not deductible. Again, we are waiting to see if Congress is going to change this with subsequent legislation. There is a chance that they will address this issue and if they do, we will let you know the impact as soon as that information becomes available.